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CDOs

Collateralized Debt Obligations, what are they and why are they important to you? It's how we got in this mess in the first place.

What is a Collateralized Debt Obligation?

Collateraized Debt Obligations are an investment-grade security backed by a pool of bonds, loans and other assets. CDOs do not specialize in one type of debt but are often non-mortgage loans or bonds.