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.

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 ...

Duration: 14:24
Posted: May 29, 2017

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 ...

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.

Sep 5, 2023 · Hi guys, I've been diving into FI and I'm looking for some clarification on the key differences between MBS, CMBS, RMBS, CMO, and CDO.

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