CDOs of Home Equity ABS vs standardized ABX tranches

--both targe BBB and BBB- --CDOs offer greater name, sector, and rating diversity than standardized ABX tranches --many CDOs of ABS feature a cashflow waterfall, or a payment priority than driverts interest away from junior tranches if performance deteriorates. ABX tranches use a simple linear write-down, where each principal wriedown on a reference tranche requires a protection payment by the first loss piece, and reduces subordination for more senior tranches. --CDOs of ABS are frequently managed, whereas the standardized ABX tranches will use a static protfolio. --CDOs of ABS do not use standardized attachment points, but they do give an initial sense of how spread is distributed across tranches