collateralized debt obligation

British

noun

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

"Collins English Dictionary — Complete & Unabridged" 2012 Digital Edition © William Collins Sons & Co. Ltd. 1979, 1986 © HarperCollins Publishers 1998, 2000, 2003, 2005, 2006, 2007, 2009, 2012

Example Sentences

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

From Washington Post • Dec. 22, 2015

They learned a lesson from the Securities and Exchange Commission’s lawsuit in 2010 against Goldman Sachs for its sale of a collateralized debt obligation.

From New York Times • Apr. 28, 2015

He also acted as lead counsel in seeking court approval of a $285 million settlement with Citigroup Inc, which the SEC accused of misleading investors in the sale of a $1 billion collateralized debt obligation.

From Reuters • Aug. 4, 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

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

Definitions and idiom definitions from Dictionary.com Unabridged, based on the Random House Unabridged Dictionary, © Random House, Inc. 2023