Synthetic CDO Portfolio

From Open Risk Manual

Definition

Synthetic CDO Portfolio.


Issues and Challenges

Review notes: What real stuff is this made of? Would be the actual contracts (the Ref Obligation contracts or the CDS contract)? Buyer of protection is buying protection and paying a fee. Similar to shorting on a stock. Seller of the protection is the one creating the instruments. So the Protection Seller is using the synthetic CDO as some kind of synthetic vehicle. Inside the portfolio is the actual contract that generates the cash.

Disclaimer

This entry annotates a FIBO Ontology Class. FIBO is a trademark and the FIBO Ontology is copyright of the EDM Council, released under the MIT Open Source License. There is no guarantee that the content of this page will remain aligned with, or correctly interprets, the concepts covered by the FIBO ontology.