When the Underlying Pool of Debt Obligations Consists of Bond-Type

question 17

Multiple Choice

When the underlying pool of debt obligations consists of bond-type instruments (corporate and emerging market bonds) , a CDO is referred to as a ________. When the underlying pool of debt obligations is bank loans, a CDO is referred to as a ________.

• A) collateralized loan obligation (CLO); collateralized bond obligation (CBO)
• B) collateralized bond security (CBS); collateralized loan obligation (CLO)
• C) collateralized bond obligation (CBO); collateralized loan security (CLS)
• D) collateralized bond obligation (CBO); collateralized loan obligation (CLO)

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Definitions:

Infiltrated

In medical context, it refers to the diffusion or accumulation of foreign substances or cells into tissues, often leading to an inflammatory response.

Chloride

A chemical element or compound (often sodium chloride or potassium chloride) that plays essential roles in fluid balance and acid-base balance in the body.

Anions

Negatively charged ions, which move towards the anode (positive electrode) during electrolysis.

Charged Particles

Ions or electrons that carry an electrical charge, fundamental to numerous physical and chemical processes.