CDOs are one example of the financial derivatives known as asset-backed securities (ABSs).

Name: CDOs are one example of the financial derivatives known as asset-backed securities (ABSs).
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CDOs, or Collateralized Debt Obligations, are a type of asset-backed security (ABS) that pools various debt instruments such as loans, bonds, and mortgages, and then issues tranches of securities backed by these assets, offering different levels of risk and returns.

CDOs Are One Example of the Financial Derivatives Known as Asset-Backed