DBC 2431 - Collateralized Debt Obligation (CDO)
The Banking Tutor
Daily
Banking Concept - 2431
A Collateralized Debt Obligation (CDO) is a
structured financial product that pools income-generating assets—such as
mortgages, bonds, and loans—into a single security, which is then divided into
tranches with varying risk and return levels. Sold to institutional investors,
CDOs allow banks to transfer credit risk and free up capital.


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