One of the concerns about CDOs from the very beginning was that the CDO originator had no continuing link or responsibility to the mortgage.

Name: One of the concerns about CDOs from the very beginning was that the CDO originator had no continuing link or responsibility to the mortgage.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

This is true. Once the CDO originator sold the CDO to investors, they were no longer responsible for the underlying mortgages or the performance of the CDO.

One of the Concerns About CDOs from the Very Beginning