What is CASH COLLATERALIZED DEBT OBLIGATION?

(CDO) A COLLATERALIZED DEBT OBLIGATION that is created on a funded basis through the use of actual DEBT securities rather than CREDIT DERIVATIVE contracts. A cash CDO may be structured as a BALANCE SHEET CDO or an ARBITRAGE CDO, and may be managed statically or dynamically. See also SYNTHETIC COLLATERALIZED DEBTOBLIGATION.

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