Do we have to know CDO?

CFA Level III Fixed Income
#1

I believe CDO / MBS / ABS were taken out of the curriculum 2 years ago

But one of the Fixed Income (the 3rd FI reading) EOC questions involves CDO and senior tranche and junior tranche and all that. Was this a mistake that they forgot to remove the EOC? Or do we have to know how to do this?

#2

I suggest that you e-mail CFA Institute and ask them, then report back here. I believe that the question is there in error, but you’re better off being safe.

#3

It’s easy but seems to be this question strayed from level 2 Curriculum. And it was there the same one.

#4

So far all questions I saw involving MBS evolved around one theme: these FI instruments are subject to contingent claim risk. That’s pretty much it.