11-EF-08: NCUA: Technical Corrections to Corporate Rule

The final rule revises the definition of a “collateralized debt obligation” (CDO) that corporates are prohibited from investing in. The following would be specifically excluded from the definition of CDOs: commercial mortgage backed securities, securities collateralized by Agency mortgage-backed securities (Agency MBS); and securities that are fully guaranteed as to principal and interest by the United States government and its agencies and government sponsored enterprises.

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