Collateralized Debt Obligation - CDO

Definition of 'Collateralized Debt Obligation - CDO'

A structured financial product that pools together cash flow-generating assets and repackages this asset pool into discrete tranches that can be sold to investors. A collateralized debt obligation (CDO) is so-called because the pooled assets – such as mortgages, bonds and loans – are essentially debt obligations that serve as collateral for the CDO. The tranches in a CDO vary substantially in their risk profile. The senior tranches are relatively safer because they have first priority on the collateral in the event of default. As a result, the senior tranches of a CDO generally have a higher credit rating and offer lower coupon rates than the junior tranches, which offer higher coupon rates to compensate for their higher default risk.

http://www.investopedia.com/terms/c/cdo.asp

担保债务凭证(Collateralized Debt Obligation，简称CDO)，资产证券化家族中重要的组成部分。它的标的资产一般是信贷资产或债券。这也就衍生出了它按资产分类的重要的两个分支：CLO(Collateralised Loan Obligation)和CBO(Collateralised Bond Obligation)。前者指的是信贷资产的证券化，后者指的是市场流通债券的再证券化。可是它们都统称为CDO。

http://baike.baidu.com/link?url=IMFcBqks2SLSZq7kls-oEVYCVHrkHVi5SrM4frJe1yYo2Pnx7TKOUpKHI5dhJUIx