Decentralized Finance (DeFi)

Collateralized Debt Obligation (CDO)

Also: CDO

A traditional-finance product that bundles loans, such as mortgages, into securities sold in tiers of risk. Mispriced CDOs sat at the center of the 2008 financial crisis, and the term is cited in debates over the opacity of financial engineering.

General education, not investment, legal or tax advice. Markets and regulation change quickly: where a definition depends on current law or on a recent event, check the latest coverage before relying on it.