(Bloomberg) -- Merrill Lynch & Co., the world's biggest brokerage, will introduce the first collateralized debt obligation based on foreign exchange contracts, the bank said.
CDOs were created by packaging assets such as debt or derivatives and using the income to pay investors. In the past two years investors have bought into CDOs backed by equities and commodities as it can allow them to achieve a higher yield. Currency CDOs are derived from foreign-exchange contracts that pay the buyer when a currency reaches an agreed level.
Read more at Bloomberg Currencies News
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