Publications

Investing in Collateralized Debt Obligations

Type
Link
Cost
Paid
Published
2001

The fastest-growing sector of the asset-backed securities market is the collateralized debt obligation market. Investing in Collateralized Debt Obligations covers not only the fundamental features of these securities and the investment characteristics that make them attractive to a broad range of institutional investors, but also the tools for identifying relative value.

  • CDOs are securities backed by a pool of diversified assets.
  • They are referred to as collateralized bond obligations (CBOs) when the underlying assets are bonds and referred as collateralized loan obligations (CLOs) when the underlying assets are bank loans.