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Preferred term

collateralized debt obligation  

Definition

  • Collateralized debt obligations (CDOs) are assets that are used as collateral and then pooled together in order to be the basis of new securities that provide cash flows. A company buys the debt instruments, collects the cash from the debts, and then sells securities that are in effect purchases of a portion of the cash flow. [Source: Encyclopedia of Business in Today's World; Collateralized Debt Obligations]

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URI

https://concepts.sagepub.com/social-science/concept/collateralized_debt_obligation

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