cdo-cubed
Word Rarity
Very rare
Frequency: Zipf frequency 2.19 in modern English
16
Scrabble Score
8
Letters
2
Syllables
6
Unique Chars
Meaning
noun
A type of CDO (collateralized debt obligation) that invests in CDO-squareds.
Example Sentences
- "Given the number of CDO Squared transactions in the marketplace, and the continued narrowing of corporate spreads, the emergence of CDO Cubed could be regarded as almost inevitable."
- "But what if you can't sell all the bottom tranches of the CDO-squared securities? You guessed it. You form another pool of those untouchables—called a CDO cubed—and tranche away again."
- "A CDO squared is a CDO that only uses other CDOs as collateral. The CDO cubed is a special purpose vehicle with securitization payments in the form of tranches. A CDO cubed is backed by CDO squared tranches, allowing the banks to resell the credit risk they had taken once again by repackaging their CDO-squared."