CDO GROUP OF FLORIDA, INC.
structures · varieties Toggle Concept · 1 ] · Originally developed as instruments for the corporate debt markets · after 2002 CDOs became vehicles for refinancing mortgage-backed securities (MBS). [ · 2 ] · [ · 3 ] · Like other private label securities backed by assets · a CDO can be thought of as a promise to pay investors in a prescribed sequence · based on the cash flow the CDO collects from the pool of bonds or other assets it owns. [ · 4 ] · Distinctively · 5 ] · The CDO is "sliced" into sections known as "tranches" · which "catch" the cash flow of interest and principal payments in sequence based on seniority. [ · 6 ] · If some loans default and the cash collected by the CDO is insufficient to pay all of its investors · those in the lowest · most "junior" tranches suffer losses first. [
CHESTERTON, IN 46304
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