The collateralized debt obligation, the CDO, is a structure which allows you to more or less continuously choose how much risk you want to take in a whole batch of securities. And the reason why they got us into so much trouble is that it’s hard to figure out how much risk you really are taking.
![The collateralized debt obligation, the CDO, is a structure which allows you The collateralized debt obligation, the CDO, is a structure which allows you Image](https://www.idlehearts.com/images/the-collateralized-debt-obligation-the-cdo-is-a-structure-which-allows-you.jpg?x85372)