Results for: Cdo

In Investing and Financial Markets

What is a mezzanine ABS CDO?

Answer . A CDO is a collateralized debt obligation, a security whose principal and interest are repaid by the cash flows generated by a portfolio of assets (usually loans ( Full Answer )
In Mathematical Finance

Why is the spread of an equity CDO tranche decreasing with correlation?

Answer . When you increase correlation, you are increasing the probability of having very large losses, as well as the probability of having no loss at all. So, you are in ( Full Answer )
In New England Patriots

What is a first loss tranche in a CDO?

Answer . A first loss tranche is the sum of all tranches up to an attachment point. For example, 0-6%, the sum of the 0-3% tranche and the 3-6% tranche, is a first loss tr ( Full Answer )
In Business & Finance

Why is the Gaussian Copula model so widely used in the financial industry to price CDO's and CDO tranches?

Answer . Jon Gregory of BNP Paribas and Jean-Paul Laurent of Univeristy of Lyon and BNP Paribas in their paper, "In the Core of Correlation," indicate the appeal of the Gua ( Full Answer )
In Mathematical Finance

How do you compute the Greeks within the Gaussian copula CDO valuation model?

They cannot be coputed directly. It is a static model. You can estimate the Greeks by shifting the market-data inputs, but there are no analytic formulas. Since most firms cal ( Full Answer )
In Investing and Financial Markets

Can you have a Super senior tranche of a mezzanine cdo?

no, It would be possible however the only splitting up in tiers was in the junior/equity tranche as these are the ones which carried the most risk and thus the most profit.
In Mortgages

What is the difference between cdo and cmo?

CMO is the securitized Collateralized Mortgage Obligation. CDO is the "insurance" issued against the CMO in case of default. President Clinton in 2000 signed into law the ( Full Answer )
In Investing and Financial Markets

What is the difference between a CDO and a CDS?

CDOs assemble an entire portfolio of credit risk exposures, segmentthat exposure into tranches with unique risk/return/maturityprofiles, which are then transfered or sold to i ( Full Answer )
In Investing and Financial Markets

What does the term CDO stand for?

Formally it means Collateralized Debt Obligation. This is also an acronym associated with a joke about OCD. The base joke goes, "I am not OCD, I am CDO. It is in alphabetic ( Full Answer )
In The Difference Between

What is the Difference between a CDO and CLO?

Essentially not a great deal! A Collateralised Debt Obligation (CDO) is a product whereby a Special Purpose Vehicle (SPV) is populated with a wide variety of assets. The retur ( Full Answer )
In Sentence and Word Structure

How cdo you use varieties in a sentence?

Those nice folks over at Heinz Foods are pretty proud of their 57 varieties! The varieties of types of plant life in the Amazon seem to be endless. I just learned to pre ( Full Answer )