Like the MBS, it is based on mortgages; but like the CDO, it is divided and sold in tranches, based on the mortgages' maturities and risk factor.

Duration: 14:24
Posted: May 29, 2017

Despite the definitive differences, CDO and MBS have overlaps in function: both are created and exchanged as financial instruments, and some MBS may be CDOs.

Jul 12, 2010 · L2 dives pretty deep into MBS. A CDO (Collateralized Debt Obligation) is a SIV (Structured Investment Vehicle) and is a portfolio of ABS. CDOs ...

Each package becomes an MBS that can be purchased by investors. The ABS is, similarly, a pool of assets, but the pool consists of any debt other than mortgages.

May 20, 2016 · A Mortgage backed security is a form of CDO. ... MBS is technically a brand ... CDO is a more general term (like adhesive bandage or facial tissue ...

Nov 13, 2018 · MBS is securitization of mortgages as the name states. CDOs can be anything from MBS, CDS - credit default Swaps, other securitized loans - car ...

CDO collateral became dominated by high risk (BBB or A) tranches recycled from other asset-backed securities, whose assets were usually subprime mortgages.

CDO-Squared · Asset-backed security · Tranche