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Essentially not a great deal! A Collateralised Debt Obligation (CDO) is a product whereby a Special Purpose Vehicle (SPV) is populated with a wide variety of assets. The returns from these assets are then split by risk such that depending on your risk aversion/investment profile you can buy highly rated tranches of a CDO with lower rates of return, or alternatively more risky tranches with higher rates of return.
A Collateralised Loan Obligation (CLO) only has loans in the SPV.
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What is the difference between cdo and cmo?
CMO is the securitized Collateralized Mortgage Obligation. CDO is the "insurance" issued against the CMO in case of default. President Clinton in 2000 signed into law the ability for financial institutions to write this "insurance". They could not call it insurance or it would be regulated by insurance laws which governs the process including how much the insurer must have in excess of what they are insuring. The fact that it was not called insurance and the subsequent resistance of any regulation allowed institutions offering CDOs to operate without having any funds in reserves to cover a default by the underlying CMO.
What is the difference between center and middle?
Is the same as the difference between middle and center
Difference between visa refusal and denial?
what is the difference between refusal and denial
What is the difference between financial budget and a financial budget?
There is no difference between them.. Their difference only is how you understood about financial budget.. :)
What is the difference between lessor and leaser?
No difference.
Owner of cdo factory?
owner of cdo
Names of CDO city officials?
=who are the CDO city officials 2009?....=
Who is the owner of CDO product?
Corazon D. Havier is the owner of CDO.. hope it can help :))
What is the chemical formula of zinc hypochlorite?
The formula: Zn(ClO)2 is for Zinc Hypochlorite.
What is the formula for hypochlorite ion?
ClO-
What is the formula for cadmium?
I think it is CdC2O4
What is the conjugate of CLO?
HClO. ClO and a - charge, which means it wants a proton. Therefor, the H comes and attaches itself to ClO making HClO
What actors and actresses appeared in La storia di Clo-Clo - 1923?
The cast of La storia di Clo-Clo - 1923 includes: Vittorio Pieri as il Conte zio Franz Sala
Calcium hypochlorite chemical equation?
Formula: Calcium chlorite = Ca(ClO2)2 Calcium hypochlorite = Ca(ClO)2
What is the compound name for CdO?
Cadmium Oxide
Who is the owner of cdo FOODS?
Potang ina!
Does clO gas destroyes the stratosphere?
ClO gas reacts with ozone. It depletes the ozone layer.
