CDO


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CDO

Collateralized Debt Obligation

An asset-backed security backed by the receivables on loans, bonds, or other debt. Banks package and sell their receivables on debt to investors in order to reduce the risk of loss due to default. Returns on CDOs are paid in tranches; that is, the individual loans backing each CDO have different levels of risk, and investors are paid out according to the level of risk they have acquired. Banks offer higher interest rates to investors willing to buy CDOs backed by higher-risk loans. From a bank's perspective, in addition to reducing risk, CDOs also reduce their capital requirements because they can raise funds through the issue of CDOs. While, theoretically, CDOs can be backed by mortgages, one usually refers to these as collateralized mortgage obligations.

CDO

References in periodicals archive ?
CDOs should work with their organizations' leaders to adapt or change the investment models their businesses currently have in place.
Downgrades may occur should the ratings of the CRE CDO bonds migrate downward and/or further losses be realized.
Are more companies putting chief data officers (CDOs) in place?
Significantly, there is not a single CDO we found who has served in the position for more than one company.
This complex was also used as a single source precursor to prepare CdO thin films at different annealing temperatures on the glass substrate by spin coating method.
Campus leadership, beginning with the president, bears responsibility for creating an environment within which the CDO can thrive without having to do everything.
State and local governments hold $90 billion, or 8 percent; life insurance companies hold $64 billion, or 6 percent; CMBS, CDO and other ABS issues hold $55 billion, or 5 percent.
In our calculation, we have chosen the NaCl structure for CdO at ambient pressure.
More than likely, the CDO's role will involve the desegregation of CIO and chief information security officer (CISO)--like responsibilities, rolling together elements from both sides of the house.
During the course of 2015, CDO Club is predicting that the number of Chief Digital Officers roaming the halls of corporate America will double to about 2,000 individuals.
Cadmium oxide is an inorganic compound with the chemical formula CdO. It occurs naturally in the rare mineral monteponite and found as a colorless amorphous powder or as brown or red crystals.
On July 25, 2014, Asset Backed Alert reported that the Federal Deposit Insurance Corporation (FDIC) had begun to auction its holdings of trust-preferred (TruP) collateralized debt obligation (CDO) securities.