CDO-Squared

CDO-Squared is a term used to describe collateralized debt obligations backed primarily by the tranches issued by other CDOs.[1]

Overview

These instruments became popular before the financial crisis of 2007–08. There were 36 CDO-Squared deals made in 2005, 48 in 2006 and 41 in 2007. Merrill Lynch was a big producer, creating and selling 11 of them.[2]

References

  1. ↑ "CDOs-Squared Demystified" (PDF). Nomura Fixed Income Research. Retrieved 8 February 2016.
  2. ↑ The Financial Crisis Inquiry Report, 2011, p.130
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