What does CASH COLLATERALIZED DEBT OBLIGATION mean?

CASH COLLATERALIZED DEBT OBLIGATION meaning in Law Dictionary

(CDO) A COLLATERALIZED DEBT OBLIGATION that is created on a funded basis through the use of actual DEBT securities rather than CREDIT DERIVATIVE contracts. A cash CDO may be structured as a BALANCE SHEET CDO or an ARBITRAGE CDO, and may be managed statically or dynamically. See also SYNTHETIC COLLATERALIZED DEBTOBLIGATION.