A CDO, or Collateralized Debt Obligation, is generally a standardized investment product which consists of various real or synthetic assets.
When the assets consist wholly of mortgages from buyers who are too stupid to realize that they will never be able to pay them back - ever - in this or any other universe - they become CDAOs.
Banker 2: I'm not going to bother. It's a CDAO, so it's not worth the bother.
Banker 1: Booyah! Keep fuckin' that chicken.