An individual CDO is a collateralized debt obligation tailored to the specific needs of a specific group of investors.
Avoided due to their over-the-top role in the 2007-2009 financial crisis, individual CDOs started to resurface in 2016 under the name “Individual Tranche Opportunities” (BTOs).
Today, custom CDOs are mainly used by hedge funds and other experienced institutional investors.
The 48 Hour Rule refers to the part of the mortgage allocation process related to the purchase and sale of Mortgage Backed Securities (MBS) to be announced (TBA).
A major improvement is a long-term upgrade, adaptation, or improvement to a property that adds value to it, often including structural changes or restoration.
Dark pools are private asset exchanges designed to provide additional liquidity and anonymity when trading large blocks of securities away from prying eyes.
Effective gross income is calculated by adding the potential gross rental income to other income and subtracting the vacancy and loan costs of the rental property.
Esoteric debt refers to debts or other financial instruments that have a complex structure that is correctly understood by only a few people with specialized knowledge.