Synthetic CDO

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A synthetic collateralised debt obligation is a derivative resulting from the securitization of a portfolio of credit default swaps sold by a lender or issuer to a special purpose vehicle. The SPV then issues securities in the form of notes collateralised by the portfolio of bonds or loans.

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-	A synthetic ~~credit default~~ obligation is a derivative resulting from the [[Securitization\|securitization]] of a portfolio of [[Credit Default Swap\|credit default swap]]s sold by a lender or issuer to a special purpose vehicle. The [[SPV]] then issues securities in the form of notes collateralised by the portfolio of bonds or loans.	+	A synthetic [[Collateralised Debt Obligation\|collateralised debt obligation]] is a derivative resulting from the [[Securitization\|securitization]] of a portfolio of [[Credit Default Swap\|credit default swap]]s sold by a lender or issuer to a special purpose vehicle. The [[SPV]] then issues securities in the form of notes collateralised by the portfolio of bonds or loans.

	See also: [[Derivatives]]		See also: [[Derivatives]]