AIMA

A leveraged investment vehicle that issues notes to fund the purchase of pools of bonds, loans, preferred stock, hedge-fund shares or other CDOs. Also defined as a securitisation of other bonds, loans and financial instruments. Principal and interest payments on the underlying assets, fund the principal and interest payments owed to holders of CDO notes. Based on the type of their underlying assets, CDOs can take a variety of forms, including collateralized bond obligations (CBOs), which are backed almost entirely by other debt securities, collateralized loan obligations (CLOs), which are backed entirely by corporate loans, and collateralized fund obligations (CFOs). Despite the similarity of the term, collateralized mortgage obligations are not part of the CDO category.

Collateralised loan obligation (CLO) similar in structure to the Collateralized Mortgage Obligation. See Collateralized Mortgage Obligation for analogous terms -the only difference here being that the securities issued on behalf of the originating bank are backed by receivables from loans, rather than bonds.

Unsecured short-term promissory notes issued by corporations, with maturities ranging from 2 to 270 days.

A commodity, as defined in the Commodity Exchange Act, includes the agricultural commodities enumerated in Section 1a(4) of the Commodity Exchange Act and all other goods and articles, except onions as provided in Public Law 85-839 (7 U.S.C. § 13-1), a 1958 law that banned futures trading in onions, and all services, rights, and interests in which contracts for future delivery are presently or in the future dealt in.

A person engaged in a business similar to an investment trust or a syndicate and who solicits or accepts funds, securities, or property for the purpose of trading commodity futures contracts or commodity options. The CPO either itself makes trading decisions on behalf of the pool or engages a commodity trading advisor to do so.