An optical receiver includes a two-stage constant modulus algorithm (CMA) equalizer. The first stage is a modified version of a CMA equalizer and the second stage is a conventional CMA equalizer. The first stage may be made up of four sub-equalizers, of which only two of the sub-equalizers are independent, i.e., uncorrelated to each other. This first stage equalizer compensates for polarization-mode dispersion (PMD). The second stage equalizer is a conventional CMA equalizer made up of four sub-equalizers that are adjusted independently. This second stage equalizer may compensate for polarization-dependent loss (PDL). The receiver includes a first processor that determines PMD information based on a plurality of transfer function parameters of the modified CMA equalization of the first stage equalizer and the modified-equalized output and a second processor that determines PDL based on a plurality of transfer function parameters of the CMA equalization of the second stage equalizer.