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Collateralized debt obligations


									Collateralized debt obligations
?Collateralized debt obligations (Collateralized Debt Obligation, called CDO), asset
securitization important part of the family. It's the underlying asset is
usually credit assets or bonds. It also spawned its important asset classification of the
two branches: CLO (Collateralised Loan Obligation) and CBO (Collateralised Bond
Obligation). The former refers to the securitization of credit assets, which refers to the
bond market, the re-circulation of securities. But they are collectively referred to as
Collateralized debt obligations (Collateralized Debt Obligation, CDO) is a
fixed-income securities, cash flows more predictable, not only to provide investors
with diversified investment channels and increase investment returns, has further
enhanced the efficiency of financial institutions, the use of funds, transfer change in
uncertainty. Where has the cash flow of assets, securitization can be used as the
subject. Founding banks will usually have a pooling of assets of group cash flow, and
for packaging and split the assets, transferred to a special purpose company (SPV), by
way of private placement or public offering to sell fixed-income securities or shares.
CDO behind for some debt instruments, such as high-yield bonds, emerging market
bonds or state bonds, bank loans or other subordinated securities. ABS traditional pool
of its assets may be credit card receivables, cash card receivables, lease rentals, car
loan debt, etc., and CDO support is behind a number of debt instruments, such as high
yield bonds (high - yield bonds ), emerging market corporate debt or national debt
(Emerging Market Corporate Debt, Sovereign), also contains the traditional ABS
(Assets Backed Securities), residential mortgage loan securitization (Residential
Mortgage-Backed Securities, RMBS) and commercial real estate mortgage-backed
securities of (Commercial Mortgage-Backed Securities, CMBS) and other asset
securitization products.

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