CDO squared

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CDO squared

A CDO in which the underlying asset pool contains tranches of other CDOs.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

CDO Squared

Slang; a collateralized debt obligation collateralized by other collateralized debt obligations rather than directly by debt. A CDO squared may have less risk than a regular CDO, as it has more underlying debts.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved