Cryptocurrency Q&A What is the difference between a CLO and a CDO?

What is the difference between a CLO and a CDO?

DigitalLegend DigitalLegend Thu Nov 21 2024 | 6 answers 1749
I'm trying to understand the distinction between a Collateralized Loan Obligation (CLO) and a Collateralized Debt Obligation (CDO). Could someone explain the main differences between these two financial instruments? What is the difference between a CLO and a CDO?

6 answers

WhisperInfinity WhisperInfinity Sat Nov 23 2024
These vehicles hold an assortment of debt instruments.

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Andrea Andrea Sat Nov 23 2024
CDO stands as a generic term encompassing various financial vehicles.

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Raffaele Raffaele Fri Nov 22 2024
CLO, on the other hand, specifically refers to vehicles that invest in leveraged loans.

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Valentino Valentino Fri Nov 22 2024
Bonds are one type of debt instrument included in CDOs.

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mia_harrison_painter mia_harrison_painter Fri Nov 22 2024
Mortgages, particularly subprime mortgages, are also part of CDO holdings.

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