What does ARBITRAGE COLLATERALIZED DEBT OBLIGATION mean?

ARBITRAGE COLLATERALIZED DEBT OBLIGATION meaning in Law Dictionary

COLLATERALIZED DEBT OBLIGATION (CDO) organized by a BANK or SECURITIES FIRM to make use of understood profit opportunities between assembling and handling a PORTFOLIO of credit high-risk securities or CREDIT DERIVATIVES and providing TRANCHES to invest in the portfolio. See in addition BALANCE SHEET COLLATERALIZED DEBT OBLIGATION, MONEY COLLATERALIZED DEBT OBLIGATION,SYNTHETIC COLLATERALIZED DEBT OBLIGATION.