Financial Markets

Extra

What does CDO means?
 
and in generell Securitization. 
 
Follow words has to say: 
 
- Securitization
- CDO
- MBS
- ABS






Securitization is the financial practice of pooling various types of contractual debt such as residential mortgages, commercial mortgages, auto loans or credit card debt obligations (or other non-debt assets which generate receivables) and selling their related cash flows to third party investors as securities, which may be described as bonds, pass-through securities, or collateralized debt obligations (CDOs).
 
 
The investors are repaid from the capital and interest cash flows of the underlying liabilities and redistributed over the capital structure of the new financing. Mortgage-backed securities (MBS) are securities secured by mortgage loans, while asset-backed securities (ABS) are securities secured by other types of loans.


Master trust ist dafür verantwortlich, dass Gelder der loans eingesammelt werden und gibt diese an die Investoren weiter. 

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