Task: Class Definition Understanding (ontology: Business_Finance/Financial_Industry_Business_Ontology)

Which of the following definitions best describes 'static c d o portfolio'?

A. A portfolio where the reference assets of the CDO are bought (the portfolio is ramped up) and then the CDO manager may alter the portfolio as they see fit.
B. A pool of CDO securities. The underlying of the CDO Squared is a pool of CDO instruments.
C. The source of funds for the CDO is cashflow. this means that cash flows from collateral are used to pay principal and interest to investors.
D. A portfolio where collateral of the CDO is fixed through the life of the CDO. The reference assets are bought and then are kept untouched for the term of the product.

Answer: A portfolio where collateral of the CDO is fixed through the life of the CDO. The reference assets are bought and then are kept untouched for the term of the product.