Synthetic Collateralized Debt Obligation(redirected from Synthetic Collateralized Debt Obligations)
Synthetic Collateralized Debt Obligation
A collateralized debt obligation that invests in credit default swaps. This investment can lead to large returns for holders of the CDO; however, the nature of credit default swaps may leave the holders liable for more than their initial investments, should there be significant changes in the credit default swaps.
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