For example, if homeowners fail to make their ... for home mortgage loans so they could be traded more easily. Collateralized debt obligations (CDOs) are similar to CMOs in that they contain ...

If collateralized loan obligations sound familiar, you may be thinking about collateralized debt obligations, or CDOs, an asset that was mentioned often in the 2015 film “The Big Short.” ...

Like the underlying mortgages, the collateralized debt obligations paid principal and interest. In a simple three-tranche example, the least risky, or senior, tranche has the first claim on the ...