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FDO

It stands for forward-starting CDO; a single-tranche CDO (an exotic CDO product) with a premium starting at a pre-specified time...

Cash Flow Waterfall

In general, it is a method to determine how the monthly interest and principal cash flows are allocated among all...

Islamic CDO

A collateralized debt obligation (CDO) that is structured in a way compliant with shari'ah rules and principles. The pool (reference...

CDO

It stands for collateralized debt obligation; an investment-grade bond that is backed by a pool of variously-rated debt obligations including...

Funded Tranche

A synthetic CDO tranche in which the CDO investor pays the notional amount of the tranche at inception, and the...

Tranched Portfolio Default Swap

A variation of collateralized debt obligations (CDOs) in which the exposure to the default swap is divided into tranches (small...

Synthetic CDO

A credit derivative (originally a collateralized debt obligation) whereby the credit risk on a reference portfolio is transferred between the...

CDO

An abbreviation for collateralized debt obligation; a debt security that is collateralized (i.e., backed) by various types of debt obligations...

Bespoke CDO

A synthetic structure that consists of a single tranche. It is simpler than a standard synthetic tranche and can be...

Above-Water Asset

An asset whose market value exceeds its book value. In other words, assets such as bonds, CDOs, mortgages, are said...