7. A synthetic CDO is a completely unfunded structure which uses credit default swaps to transfer the

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7. A synthetic CDO is a completely unfunded structure which uses credit default swaps to transfer the entire credit risk of the reference assets to investors who are protection sellers. In a partially funded CDO, only the highest credit risk segment of the portfolio is transferred.

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Measuring And Controlling Interest Rate And Credit Risk

ISBN: 9780471268062

2nd Edition

Authors: Frank J. Fabozzi, Steven V. Mann, Moorad Choudhry

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