Collateralized Loan Obligation
type: Class
preferred label: Collateralized Debt Obligation
alternative label: CDO
alternative label: CLO
subclass of: R7p3ZBGzc1BxDrCwYJnsTo
definition: A CLO is a type of structured finance instrument backed by a pool of loans. These loans are bundled together and then sliced into tranches with varying degrees of risk and reward, which are then sold to investors.