Alternative assets

Alternative assets refer to traditional structured credit products (such as CDOs or credit-linked notes, or CLNs) that do not reference fixed income assets.
For example, collateralized or collateralised commodity obligations (CCOs) reference commodities or collateralized or collateralised fund obligations (CFOs) reference hedge funds or collateralized or collateralised foreign exchange or FX obligations (CFXOs) reference a currency or currencies or FX risk. Further, CDOs that reference trust preferred securities, or Trups, are known as Trups CDOs. There is also burgeoning interest in additional alternative assets for securitisations, or asset-backed securities (ABS) more broadly. These include environmental or green bonds, which cover such things as emissions permit or wind farm securitisations. In addition, there is growing activity in Islamic finance securitisations or sukuk.