Difference between revisions of "Collateralized debt obligation"
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| − | [[Collateralized debt obligation]] (also known | + | [[Collateralized debt obligation]] (also known by its acronym, [[CDO]]) is an obligation that is created when large numbers of mortgages are bundled into pools to create new securities that are then sliced into tranches; the tranches are re-combined and re-divided into securities called CDOs. |
==Definitions== | ==Definitions== | ||
According to [[Financial Management Theory and Practice by Eugene F. Brigham and Michael C. Ehrhardt (13th edition)]], | According to [[Financial Management Theory and Practice by Eugene F. Brigham and Michael C. Ehrhardt (13th edition)]], | ||
| − | : | + | :[[Collateralized debt obligation]] (''CDO''). Created when large numbers of mortgages are bundled into pools to create new securities that are then sliced into tranches; the tranches are re-combined and re-divided into securities called CDOs. |
==Related concepts== | ==Related concepts== | ||
Latest revision as of 07:05, 30 October 2019
Collateralized debt obligation (also known by its acronym, CDO) is an obligation that is created when large numbers of mortgages are bundled into pools to create new securities that are then sliced into tranches; the tranches are re-combined and re-divided into securities called CDOs.
Definitions
According to Financial Management Theory and Practice by Eugene F. Brigham and Michael C. Ehrhardt (13th edition),
- Collateralized debt obligation (CDO). Created when large numbers of mortgages are bundled into pools to create new securities that are then sliced into tranches; the tranches are re-combined and re-divided into securities called CDOs.
Related concepts
- Financial management. A combination of enterprise efforts undertaken in order to procure and utilize monetary resources of the enterprise.
