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

Which of the following definitions best describes 'a b s c d o instrument'?

A. structured debt security that has investment-grade bonds as its underlying assets backed by the receivables on high-yield or junk bonds
B. A floater tranche is a tranche that is keyed to an index and a spread. The spread is added to the index.
C. The tranche between senior and subordinated. Mezzanine tranches of a CDO issue are typically rated B to BBB.
D. CDO where the underlying asset pool is ABS.

Answer: CDO where the underlying asset pool is ABS.