Dear sir,
Could you please explain briefly ‘special purpose vehicles’ (SPVs) and ‘collateralised debt obligations’ (CDOs) to me?.
Thanks in advance
Ask the Tutor ACCA AFM
Securitisation
Rather than me typing out a detailed explanation, have a look at these pages:
For SPV's: https://www.investopedia.com/terms/s/spv.asp
For CDO's read the technical article on the ACCA website: https://www.accaglobal.com/gb/en/student/exam-support-resources/professional-exams-study-resources/p4/technical-articles/toxic-assets.html
(for a basic understanding of the idea of securitisation in general, see my previous post:
https://opentuition.com/topic/securitisation-6/ )
Thank you!
You are welcome :-)
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