Question

were designed to concentrate the credit risk of a bundle of loans on one class of investor, leaving the other investors in the pool relatively protected from that risk_____________.

Answer 1

collateralized debt obligation

Step-by-step explanation:a

collateralized debt obligation is referred to an emergency asset that would be used as collateral assets if a company unable to pay the loan.

It is basically introduced by the bank to regain the loan value that is sold to particular investors. it helps the bank to make more funds and it also helps to transfer risk from bank to investor.