collateralized debt obligation

British  

noun

1.  CDO.  a debt security collateralized by a number of debt obligations including loans and bonds of different credit quality and maturity

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Example Sentences

Q: Can you explain, in 25 words, what a synthetic collateralized debt obligation is?

From Washington Post • Dec. 22, 2015

Fearing that a housing crash was nearing, Goldman bundled its worst mortgage bonds into a synthetic collateralized debt obligation — the kind of security the financial media would later label as “toxic mortgages.”

From New York Times • Dec. 19, 2013

The deal at issue in the Tourre case, a synthetic collateralized debt obligation, or CDO, cost investors $1 billion but allowed Paulson & Co., a Goldman Sachs client, to profit, according to the SEC.

From The Wall Street Journal • Jul. 18, 2013

But investors were not told that the hedge fund helped pick the securities that went into the product, known as a collateralized debt obligation, the agency said.

From Washington Post • Jul. 16, 2013

How do you explain to an innocent citizen of the free world the importance of a credit default swap on a double-A tranche of a subprime-backed collateralized debt obligation?

From "The Big Short" by Michael Lewis