Both MBS and CDOs are fixed-income securities: They consist of a bundled group of individual assets—mainly various types of loans and other debt—that, bond-like, generate interest for investors. ... So, many MBS may be part of CDOs; depending on their structure, they may also qualify as CDOs.

What is a CDO called now?

A bespoke CDO is now more commonly referred to as a bespoke tranche or a bespoke tranche opportunity (BTO).

Is CDO and CMO same?

Collateralized Debt Obligations. Like CMOs, collateralized debt obligations (CDOs) consist of a group of loans bundled together and sold as an investment vehicle. However, whereas CMOs only contain mortgages, CDOs contain a range of loans such as car loans, credit cards, commercial loans, and even mortgages.