A Primer On Collateralized Debt Obligation (CDOs)



Next video:
Loading the player...

A CDO is a structured financial product backed by a pool of loans. The promised repayment of the loans in the pool is the collateral that gives the CDOs value; hence the term "collateralized."

 

Related Articles
  1. Credit & Loans

    What Is Collateral?

    Collateral is property or other assets that a borrower offers a lender to secure a loan. If the borrower stops making the promised loan payments, the lender can seize the collateral to recoup ...
  2. Home & Auto

    What Is A Mortgage?

    A mortgage is a loan used to purchase a home, where the property serves as the borrower's collateral.
  3. Investing

    Credit Default Swaps (CDS)

    Discover what CDS are and how they can benefit companies and investors.
  4. Credit & Loans

    Warning Signs Of A Troubled Company

    Learn about some important signals that indicate a company may be in serious trouble.
  5. Budgeting

    Explaining Underwater Loans

    Feel like you're drowning in debt? It may be because your loans have gone underwater.
  6. Home & Auto

    Understanding Mortgage-Backed Securities

    Find out the meaning of this popular asset-backed security and its benefits for banks and investors.
  7. Professionals

    Are Hedge Fund ETFs Suitable for Your Portfolio?

    Are hedge fund ETFs right for you? Here's what investors need to consider.
  8. Mutual Funds & ETFs

    Currency-Hedged ETFs: Should You Invest?

    Currency-hedged ETFs offer many more pros than cons when compared to their counterparts, but there is still one big con.
  9. Professionals

    State Street Shifts to Hedge Funds

    ETF pioneer State Street has been losing market share to its peers. Here's how it plans to turn that around.
  10. Bonds & Fixed Income

    Brave Enough to Invest in Greek Bonds? Here's How

    Learn how an individual investor can invest in Greek government bonds, along with an overview of the substantial risks and potential profit.

You May Also Like

Trading Center
×

You are using adblocking software

Want access to all of Investopedia? Add us to your “whitelist”
so you'll never miss a feature!