Collateralized Debt Obligation (CDO) is a financial product that combines cash flows generated from different underlying loans or debts secured by collaterals and packaged into different tranches in order to sell to different investors or funds. The tranches in a CDO have different risk level which is mapped with the risk appetite of various investors. […]Continue Reading... Comments Off on Collateralized Debt Obligation (CDO)
Basel I had been modified later to Basel II in 2004 to make it more effective to regulate the banks. While Basel I had considered only the credit risk, Basel II has considered other risk factors as well and suggested international standard guidelines to guard all the banks against the same. Basel II has published […]Continue Reading... No Comments.