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Definition of Warehousing Warehousing refers to the intermediate step in a collateralized debt obligation (CDO) transaction that involves the accumulation, custody, and management of bonds or loans during a three-month period prior to securitization as part of a CDO. As an asset accumulation process before the final sale, warehousing plays
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Introduction to Distribution Waterfalls The world of private equity and hedge funds involves intricate structures that govern the allocation of returns between various stakeholders. One such structure is a distribution waterfall, which determines the order in which investment gains are distributed among investors. This mechanism is particularly relevant when underlying
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