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Which of the following statements concerning arbitrage-driven cash collateralized debt obligations (CDO) is least accurate? CDOs pool only fixed-rate bonds but issue both fixed- and
Which of the following statements concerning arbitrage-driven cash collateralized debt obligations (CDO) is least accurate?
CDOs pool only fixed-rate bonds but issue both fixed- and floating-rate tranches from the pool.
Rating agencies typically require the CDC to have an interest rate swap.
The senior tranche in the CDC is generally about 70%-80% of the deal
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