Past pivots : Hot Topic

Collateralized Debt Obligations CDO

Search Dictionary

Definition of 'Collateralized Debt Obligations CDO'

Collateralized debt obligations are created by repackaging bonds that in turn are created from home loans. Until the summer of 2007 these CDOs carried triple-A (AAA) ratings and were thought of as "super-safe" investments.

Super-senior holdings are the highest-rated of all CDO bonds. When the Global Financial Crisis (GFC) hit the marked these plunged as subprime-mortgage defaults surged causing many banks for post record losses.

Citigroup, for example, had to get a $45 billion taxpayer bailout in late 2008.

Do you have a trading or investing definition for our dictionary? Click the Create Definition link to add your own definition. You will earn 150 bonus reputation points for each definition that is accepted.

Is this definition wrong? Let us know by posting to the forum and we will correct it.

Emini Day Trading / Daily Notes / Forecast / Economic Events / Trading Indicators / Search / Terms and Conditions / Disclaimer / Books / Online Books / Site Map / Contact / Privacy Policy / Links / About / Day Trading Forum / Investment Calculators / Pivot Point Calculator / Market Profile Generator / Fibonacci Calculator / Mailing List / Advertise Here / Articles / Financial Terms / Brokers / Software / Holidays / Stock Split Calendar / Features / Mortgage Calculator / User Pages / Donate

Copyright © 2004-2018, MyPivots. All rights reserved.