Collateral trust bond

Discussion in 'SP5' started by r_v.s, Oct 23, 2014.

  1. r_v.s

    r_v.s Member

    Is a collateral trust bond the same as a CDO?
     
    r_v.s, Oct 23, 2014
    #1
  2. Simon James

    Simon James ActEd Tutor Staff Member

    I'm not very familiar with the term. It seems to be a bond that is secured on an asset (security) that is held in trust (so is available in the event of default). So it is similar to a CDO, but the collaterailsed assets are not placed in trust under a CDO.
     
    Simon James, Oct 23, 2014
    #2
  3. r_v.s

    r_v.s Member

    Thank you!
     
    r_v.s, Oct 24, 2014
    #3

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