Which of the following is true of a synthetic CDO?
A) It is created from portfolios of bonds
B) It is created from portfolios of CDSs
C) It references a standard portfolio of bonds
D) None of the above

Name: Which of the following is true of a synthetic CDO? A) It is created from portfolios of bonds B) It is created from portfolios of CDSs C) It references a standard portfolio of bonds D) None of the above
Brand: Quizplus
Rating: 4.9 (47 reviews)

Question

Quizplus · Accepted Answer

A synthetic CDO is created from a portfolio of CDSs where protection has been sold on each name.

Which of the Following Is True of a Synthetic CDO