Pooled investment - Definition and Overview

In finance "pooling" is the process of grouping together loans. Loans and debt with similar characteristics can with success be pooled into a new security.

Pooled investments

Pooled investments include, but are not restricted to:

• Asset Backed Securities) (ABS)
• Mortgage Backed Securities (MBS)
• Residential Mortgage-Backed Securities (RMBS)
• Commercial Mortgage Backed Securities (CMBS)
• Collateralized Bond Obligations (CBO)
• Collateralized Debt Obligations (CDO)
• Collateralized Mortgage Obligations (CMO)

Accounting

Pooling-of-interests is a merger-accounting method that was taken out of the market in the United States by the Financial Accounting Standards Board on June 30, 2001.

See also

• Securitization
• Structured finance