What made collateralized debt obligations (CDOs) attractive before the 2007 financial crisis?

• A. Increasing home prices gave them the perception of a safe, high-yield investment.
• B. It was a new type of investment that people wanted to experiment with.
• C. They were high-yield investments so most investors ignored the high risk associated with CDOs at the time.
• D. They were insured by the federal government.

Answer: (A)