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Investing Glossary:
Collateralized Bond Obligation (CBO)
Copyright 2008,
Campbell R. Harvey. All Rights Reserved.
Do not reproduce without explicit permission.
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| Term: |
| Collateralized Bond Obligation (CBO)
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| Definition: |
| Investment-grade Bonds backed by a Collection of junk bonds with different levels of risk, called tiers, that are determined by the quality of junk Bond involved. CBOs backed by highly risky junk bonds receive higher Interest rates than other CBOs.
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