Multiple Choice
The value of a CDO (collateralized debt obligation) unambiguously increases when
A) The correlation of default amongst the names in the CDO decreases.
B) The correlation of default amongst the names in the CDO increases.
C) The intensity of default of names in the portfolio decreases.
D) The number of names in the CDO decreases.
Correct Answer:
Verified
Correct Answer:
Verified
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