CDO-cubed

Noun

CDO-cubed (plural CDO-cubeds)

1. A type of CDO (collateralized debt obligation) that invests in CDO-squareds.
   • Given the number of CDO Squared transactions in the marketplace, and the continued narrowing of corporate spreads, the emergence of CDO Cubed could be regarded as almost inevitable.2005, Jan Job de Vries Robbé, Paul U. Ali, Securitisation of Derivatives and Alternative Asset Classes: Yearbook 2005, Kluwer Law International, page 41
   • But what if you can't sell all the bottom tranches of the CDO-squared securities? You guessed it. You form another pool of those untouchables—called a CDO cubed—and tranche away again.2009, Les Leopold, The Looting of America: How Wall Street's Game of Fantasy Finance Destroyed our Jobs, Pensions, and Prosperity and What We Can Do About It, Chelsea Green Publishing, page 92