What does CDR mean?

CDR stands for Collateralized Debt Obligation. It is a type of structured asset-backed security that is backed by a pool of debt obligations, such as corporate or mortgage loans. CDRs are often divided into different tranches with varying levels of risk and return, and they are typically sold to investors seeking exposure to the underlying debt assets. CDRs played a significant role in the financial crisis of 2008, as the collapse of the housing market led to massive losses for investors holding these securities. Since then, CDRs have been subject to increased regulation and scrutiny to prevent a similar crisis from occurring in the future.