An ABS is a type of investment that offers returns based on the repayment of debt owed by a pool of consumers. A CDO a version of an ABS that may include mortgage debt as well as other types of debt. These types of investments are marketed mainly to institutions, not to individual investors.

A collateralized mortgage obligation (CMO) is a type of mortgage-backed security that contains a pool of mortgages bundled together and sold as an investment. A collateralized debt obligation (CDO) is a finance product backed by a pool of loans and other assets and also sold as an investment.

Collateralized debt obligations (CDOs) belong to yet a larger class of investments, called asset-backed securities (ABS). Although ABS—and thus CDOs—grew out of MBS, they are more varied and more complex in structure. CDOs consist of a variety of loans and debt instruments.

Underlying Assets: CMBS primarily consist of commercial mortgage loans, while CLOs encompass corporate loans. ABS', on the other hand, have a broader range of underlying assets. Risk Profiles: CMBS and CLOs are structured to appeal to investors with varying risk appetites, offering different risk-return profiles.