Collateralized Bond Obligation
From Wikipedia, the free encyclopedia
A Collateralized Bond Obligation is an investment-grade bond backed by a pool of junk bonds. Junk bonds are typically not investment grade, but because they pool several types of credit quality bonds together, they offer enough diversification to be "investment grade."[1]
They are similar in structure to a collateralized mortgage obligation (CMO), but different in that CBOs represent different levels of credit risk, not different maturities.
[edit] External links
- FannieMae's Mortgage-Backed Securities page, including an MBS locator by CUSIP, Pool or Trust Number
[edit] References
- ^ Collateralized Bond Obligation at Investopedia. Retrieved on 2007-04-28.
 |
This economics or finance-related article is a stub. You can help Wikipedia by expanding it. |
