Collateralised Debt Obligation |
| CDOs are a type of asset backed security and structured credit product. CDOs gain exposure to the credit of a portfolio of fixed-income assets and divide the credit risk among different tranches: senior tranches (rating AAA), mezzanine tranches (AA to BB), and equity tranches (unrated). CDOs serve as an important funding vehicle for portfolio investments in credit-risky fixed-income assets. |
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