Definition, Meaning & Synonyms
cdo
Noun
/ˈsiː.diː.oʊ/
Definition
CDO stands for Collateralized Debt Obligation, which is a type of security backed by a pool of debt assets.
Examples
- The investment company issued a new CDO to attract more investors.
- CDOs can provide high returns, but they also carry significant risks.
- During the financial crisis, many CDOs lost value rapidly.
Meaning
A financial instrument that allows investors to receive returns based on the cash flows of the underlying debts, such as corporate bonds, mortgages, or loans.
Synonyms
- Debt security
- Structured finance product
