what are mezzanine CDO's?

I read that CDO's played a major role in the credit crisis of 2008. I would like to know what they are.

• Nikhil
• 28 Apr
• 4 Answers

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• • AP
    Aashish
  • 31 Aug

  You can get better understanding if you go through the videos in below url
  https://www.khanacademy.org/economics-finance-domain/core-finance/derivative-securities
  Look for topics like MBS (Mortgage Backed Securities), CDO(Collateralised Debt Obligations) and CDS(credit Default Swaps)

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• • SA
    Shaikh
  • 18 May

  Hi,
  A collateralized debt obligation (CDO) is a type of structured asset-backed security (ABS). Originally developed for the corporate debt markets, over time CDOs evolved to encompass the mortgage and mortgage-backed security ("MBS") markets.[2]
  Like other private label securities backed by assets, a CDO can be thought of as a promise to pay investors in a prescribed sequence, based on the cash flow the CDO collects from the pool of bonds or other assets it owns
   

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