CDOs and Collateralized Loan Obligations

This week's investing term comes to us from Caleb Gervais who hit us up on Instagram. A CDO or collateralized debt obligation is a complex structured finance product that is backed by a pool of loans and other assets. Though risky and not for all investors, CDOs are a pretty viable tool for shifting risk in more boring markets than the one we're currently sailing in. Lewis Ruckizer was a legendary business news broadcaster who hosted the show Wall Street week with Lewis Ruckizers on PBS for 32 years. The Dow fell 22.6% that day, the largest one-day drop in the more than 126 year history of the index.