Corporate bonds are sometimes packaged by commercial banks into in which investors receive the interest or principal payments generated by the debt securities.

Collaterised Debt Obligations (CDO)

Explanation:

Collaterised Debt Obligations is an asset backed commercial paper that has been packaged by banks for sale in the secondary market.

Commercial banks give out loans to businesses and other customer. They may repackage these loans into products to be sold to other investors different from those they originally gave the loans to initially.

Recall that commercial banks act as intermediaries between providers of money and the users of money. The CDO is another way to get liquidity.

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