CFA Practice Question

There are 490 practice questions for this study session.

CFA Practice Question

A collateralized debt obligation (CDO) is an asset-backed security that is collateralized by a pool of debt obligations and contains one or more of the following:

I. Corporate bonds with ratings below investment grade
II. Bond issues in emerging markets
III. Corporate loans advanced by commercial banks
A. I and II
B. II and III
C. I, II and III
Explanation: A CDO can also be backed by structured financial products (MBSs and ABSs), special situation loans and distressed debt.

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