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What assets would be least likely used to back a collateralized debt obligation (CDO)?

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Answer:

Collateralized debt obligation (CDO) can be defined as a structured financial product that is backed by a pool of loans and some assets that are pooled together and divided into tranches and thereby sold to institutional investors.

Some assets that can used are treasury bills, corporate bonds, real estates, certificates of deposit, and cash.

Assets that cannot be used are assets that decline in value like electronics, food etc.

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User Kurt Hamilton
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