0
A CPDO (Constant Proportion Debt Obligation) is a structure investing in riskless assets (like government bonds and bills) and selling credit protection via Credit Default Swaps. The fees generated by selling credit protection are used to pay CPDO investors an interest rate above the risk-free one. The amount of protection sold is dynamically adjusted in order to keep the credit exposure constant. So, for example, when credit spreads rise (and the value of the outstanding CDS position drops), more credit protection is sold, in order to keep constant the value of the CDS position as a proportion of the portfolio . When the risky position generates enough returns to cover all future payments to CPDO investors, it is closed and all CPDO funds are invested in risk-free assets.
Wiki User
∙ 16y ago
Add your answer:
Earn +20 pts
How did African slaves get education?
They got their education by secretly learning it if their master didn't allowed because it was illegal. Sometimes, their masters tought the slave even though it was against the law. By secretly learning it, they could learn it off another slave or steal a book and educate themselves.
How do tosters work?
they just work they just work,work,work
The work you do on a machine is called work?
the work a machine does is the work outputwhat it takes to do the work is the work inputSources;The_work_that_the_simple_machine_does_is_called_the_work
The work that the simple machine does is called the work?
the work a machine does is the work output what it takes to do the work is the work input
If a Mexican were to come and live in the US what do they do here?
Work , Work , Work , Work , Work , Work ! They do what You lazy Americans don't . Mexicans work hard . They do it all !
What is the verb in you work late?
The verb in "you work late" is "work."
What is a work calendar?
A calendar at your work, for your work, that has your work schedule on it, etc.
Will American cd's work in Australia?
Yes it can work Yes it can work Yes it can work Yes it can work
What is the differences between work input and work output?
Work Output is the work done BY a machine. Work Input is the work done ON a machine.
What is the difference between work input and work output?
Work Output is the work done BY a machine. Work Input is the work done ON a machine.
What did the executive work for?
they work for work law.
What did people do on weekends 1800?
Work work work and work some more.
