The Value of a CDO (Collateralized Debt Obligation) Unambiguously Increases

question 13

Multiple Choice

The value of a CDO (collateralized debt obligation) unambiguously increases when

• A) The correlation of default amongst the names in the CDO decreases.
• B) The correlation of default amongst the names in the CDO increases.
• C) The intensity of default of names in the portfolio decreases.
• D) The number of names in the CDO decreases.

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