A collateralized debt obligation squared is a special purpose vehicle (SPV) with securitization payments backed by CDO tranches.

CDO-Squared is a collateralized debt obligation backed primarily by the tranches issued by other CDOs. These instruments became popular before the financial ...

A collateralized debt obligation cubed (CDO-Cubed), which is backed by collateralized debt obligation squared tranches, is a derivative on steroids.

Watterson (2005) categorizes CDO^2s further into four main types of transaction: a cash CDO that invests in investment-grade debt issued by other CDOs; a cash ...

1 In short, a CDO is an arbitrage vehicle that invests in a portfolio of financial assets-commercial loans, corporate or emerging market bonds, asset-backed ...