Westonci.ca is the premier destination for reliable answers to your questions, brought to you by a community of experts. Explore our Q&A platform to find in-depth answers from a wide range of experts in different fields. Join our platform to connect with experts ready to provide precise answers to your questions in different areas.
Sagot :
A debt backed by a pool of assets, such as loans, leases, credit card debt, royalties, or receivables is known as a collateralized debt obligation.
A collateralized debt obligation also known as CDO is an example of an asset-based security (ABS).
It is just like a loan or any bond which one is backed by a portfolio of debt instruments like the bank loans, mortgages, credit card receivables, aircraft leases, smaller bonds, and sometimes even other ABSs or CDOs also.
This portfolio generally acts as the collateral for the interest generated by the CDOs, which is reaped by the institutional investors who are purchasing it.
In general terms of investments, asset backing refers to a security whose value is deriven from a single asset or a pool of assets.
To know more about asset backing here:
https://brainly.com/question/14591785
#SPJ4
We hope you found this helpful. Feel free to come back anytime for more accurate answers and updated information. Thank you for choosing our platform. We're dedicated to providing the best answers for all your questions. Visit us again. Discover more at Westonci.ca. Return for the latest expert answers and updates on various topics.
