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The derivatives in question were "constant proportion debt obligations" (CPDOs).
Relatively few constant proportion debt obligations were issued before credit markets began freezing up last summer.
The problems affected 11 constant proportion debt obligations totaling about $1 billion.
Standing for constant proportion debt obligation, CPDO's were highly levered bets on corporate debt, mostly European.
The demise of this deal — known as a constant proportion debt obligation is emblematic of what is happening to the financial system in the credit collapse of 2007.
The company said that it would discipline and possibly fire employees who had been involved in rating the debt, which are known as constant proportion debt obligations.
Constant proportion debt obligations are a relatively new investment vehicle that sold insurance protection on corporate debt issued in Europe and the United States.
In 2007, the triumph of the spreadsheet-style financial model peaked with so-called constant proportion debt obligations.
The securities in question are known as constant proportion debt obligations, or C.P.D.O.'s, a relatively new investment vehicle that sold insurance protection on corporate debt issued in Europe and the United States.
This method does not require a constant rate of sedimentation of ionium but simply that the two isotopes are precipitated in a constant proportion.
The ruling concerned a structured finance product developed in 2006 by the Dutch bank ABN Amro, known as a C.P.D.O., which stands for constant proportion debt obligation.
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