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CDO

A CDO is a collateralized debt obligation or collateralised debt obligation known collectively as CDOs. CDOs are a type of asset-backed security or structured credit product that offers exposure to the credit of a portfolio of fixed income assets, such as corporate or government debt, loans, asset-backed securities (ABS), including mortgage-backed securities (MBS) such as CMBS and MBS, known as CDOs of ABS or ABS CDOs, or other CDOs, known as CDO-squared or CDOs of CDOs. CDOs can be cashflow CDOs (referencing real assets) or synthetic CDOs (referencing credit derivatives, such as CDS) or hybrid CDOs (a mix of cashflow and synthetic). Typical CDOs divide the credit risk among different tranches: senior tranches (rated AAA), mezzanine tranches (AA to B) and equity tranches (unrated). Losses are applied in reverse order of seniority and so junior tranches offer higher coupons to compensate for the added risk. However, synthetic CDOs can be structured to offer single-tranche CDOs as well.


  • CDO charges partially overturned

    The US SEC has partially overturned a decision penalising Wing Chau and his former firm Harding Advi...

    Job Swaps    11 January 2017
  • US CLOs picking up

    Activity in the US CLO secondary market is beginning to pick-up for 2017. "Today looks like we're...

    SCIWire    10 January 2017
  • Firm nabs credit vet

    Ares Management has hired Scott Graves as a partner in the firm's private equity g...

    Job Swaps    10 January 2017
  • SCI Start the Week - 9 January

    A look at the major activity in structured finance over the past seven days.

    Pipeline The first week of the year brought a return to life for the pipeline. There were two new A...

    News    9 January 2017
  • SCI Start the Week - 19 December

    A look at the major activity in structured finance over the past seven days.

    Pipeline While the pace of pipeline additions has slowed over the last couple of weeks, new deals d...

    News    19 December 2016
  • SCI Start the Week - 12 December

    A look at the major activity in structured finance over the past seven days

    PipelinePipeline entrants were mixed last week. Three ABS, four CMBS and two RMBS were newly announc...

    News    12 December 2016
  • CDO complaint settled

    Stifel Nicolaus and its former svp David Noack have admitted wrongdoing and paid over US$24.5m to re...

    Job Swaps    9 December 2016
  • Zohar II policy bolstered

    MBIA Insurance Corp has accepted a binding commitment letter from certain holders of its 14% fixed-t...

    News Round-up    5 December 2016
  • SCI Start the Week - 5 December

    A look at the major activity in structured finance over the past seven days.

    SCI content this week is sponsored by BNY Mellon. All content this week is being made available free...

    News    5 December 2016
  • SCI Start the Week - 28 November

    A look at the major activity in structured finance over the past seven days.

    Pipeline With the week dominated by Thanksgiving, there were few pipeline additions. These amounted...

    News    28 November 2016
  • Trups defaults decline

    The number of US bank Trups CDO combined defaults and deferrals declined to 14.6% at end-October, fr...

    News Round-up    22 November 2016
  • SCI Start the Week - 21 November

    A look at the major activity in structured finance over the past seven days.

    Upcoming SCI eventSCI's latest Capital Relief Trades Seminar, 'Navigating the Cash vs Synthetic Deba...

    News    21 November 2016
  • SCI Start the Week - 14 November

    A look at the major activity in structured finance over the past seven days.

    Upcoming SCI event Panellists are being finalised for SCI's latest Capital Relief Trades Seminar, '...

    News    14 November 2016
  • Legacy CDOs unwound

    Legal & General Group has unwound four CDOs, held within Legal & General Retirement,...

    News Round-up    11 November 2016
  • SCI Start the Week - 7 November

    A look at the major activity in structured finance over the past seven days.

    Pipeline There was another pickup in pipeline additions last week, as four new ABS, three RMBS and...

    News    7 November 2016
  • Taberna CDO EOD waived

    Barclays has settled with Taberna European Capital Management, the collateral manager for both Taber...

    News Round-up    3 November 2016
  • CMBS partner poached

    Reed Smith has appointed Jodi Schwimmer as a partner in its global financial industry group in New Y...

    Job Swaps    2 November 2016
  • SCI Start the Week - 31 October

    A look at the major activity in structured finance over the past seven days.

    Pipeline As with the preceding week, last week's additions to the pipeline were relatively modest....

    News    31 October 2016
  • Credit manager adds partner

    River Birch Capital has recruited a former Pine River Capital Management portfolio manager. Gaurav T...

    Job Swaps    26 October 2016
  • SCI Start the Week - 24 October

    A look at the major activity in structured finance over the past seven days.

    Pipeline The balance appeared to shift last week, as fewer deals joined the pipeline and far more d...

    News    24 October 2016
  • Further Stanton meeting called

    A class B noteholder meeting has been convened in connection with Stanton MBS I, following one for t...

    News Round-up    19 October 2016