CDO Equity

Discussion in 'Trading' started by qazmax, Jun 2, 2006.

  1. qazmax

    qazmax

    Can anyone explain what exactly in terms of assets is held in the equity portion of a CDO.

    I get that it is the lowest most likely to default tranche. But what exactly is transpiring when a default occurs on the equity portion? I assume it is not like owning private equity.

    :)