Collaterilized Commodity Obligation (CCO)

CDO linked to commodity prices. It provides fixed income investors with access to commodities as an asset class. CCO´s are rated. The CCO uses credit derivatives technology to create a debt-style payoff, allowing investors access to a historically uncorrelated asset class and exposure to a basket of commodities in an established fixed income format. A payment is triggered under the underlying swap transactions if the traded price of a referenced commodity (energy and metals) falls below a predetermined level during the observation period.