What Is a Collateralized Debt Obligation (CDO)? in Your Answer

question 7

Essay

What is a Collateralized Debt Obligation (CDO)? In your answer explain how CDOs are generally separated into one of three tranches. What types of mistakes were made by security rating agencies that contributed to the collapse of the CDO market?

---

Definitions:

Anteversion

A position where an organ, such as the uterus, is tilted forward.

Retroversion

A condition where an organ, such as the uterus, is tilted backward instead of its normal position.

Episiotomy

A surgical cut made in the perineum (the area between the vagina and the anus) to widen the vaginal opening for childbirth.

Colposcopy

A diagnostic procedure that uses a colposcope to closely examine the cervix, vagina, and vulva for signs of disease.