A CDO is a diversified, actively managed pool of loans or bonds that issues rated securities and equity.

Name: A CDO is a diversified, actively managed pool of loans or bonds that issues rated securities and equity.
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A Collateralized Debt Obligation (CDO) is a financial product that pools together cash flow-generating assets, such as loans or bonds, and repackages this asset pool into tranches that can be sold to investors. These tranches are rated and can include both debt and equity components.

A CDO Is a Diversified, Actively Managed Pool of Loans