How are Market Value CDOs primarily managed?

Market Value Collateralized Debt Obligations (CDOs) are primarily managed by maintaining the overall portfolio value. This approach focuses on the market price of the assets in the portfolio, and managers actively monitor and adjust the asset composition to ensure that the market value remains stable or increases.

This active management allows for adjustments in the portfolio in response to changes in market conditions or asset performance. It is crucial for maintaining the credit quality and overall risk profile of the CDO, which directly impacts the payouts to investors and the ability to meet obligations. Thus, the focus is not just on the performance of individual assets, but how they collectively affect the portfolio's market value.

In contrast, options that involve holding assets to maturity, minimizing transaction costs, or ensuring all assets generate income do not encapsulate the primary strategy for managing Market Value CDOs, which is inherently focused on market fluctuations and maintaining value in the face of those changes.