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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.


  • SCI Start the Week - 8 August

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

    Pipeline A further 11 deals joined the pipeline last week. This was split into three ABS, three RMB...

    News    8 August 2016
  • Specially serviced loans increase

    Moody's reports the share of specially serviced US conduit CMBS loans increased by 82bp to 6.86% in...

    News Round-up    5 August 2016
  • CLO refinancing scenario RFC issued

    Moody's has previously outlined proposed changes to how it examines refinancing scenarios i...

    News Round-up    2 August 2016
  • SCI Start the Week - 1 August

    A look at the major activity in structured finance over the past seven days. Print last week's news ...

    Pipeline The final week of July brought six new ABS deals to the pipeline, as well as two CMBS and...

    News    1 August 2016
  • Soloso sales underway

    Wells Fargo - as trustee for Soloso CDO 2005-1 - has conducted a series of public and private sales...

    Job Swaps    27 July 2016
  • SCI Start the Week - 25 July

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

    Pipeline Last week's pipeline activity was largely in line with the week before it. There were four...

    News    25 July 2016
  • Euro secondary firm

    Spreads across the European securitisation secondary market are remaining firm. Wider market posit...

    SCIWire    21 July 2016
  • Trups CDO deferrals dip

    The number of US bank Trups CDOs combined defaults and deferrals decreased from 16.6% at the end of...

    News Round-up    20 July 2016
  • SCI Start the Week - 18 July

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

    Pipeline Last week's pipeline additions included a decent mix of MBS names. In the end there were s...

    News    18 July 2016
  • CRE CDO switches jurisdiction

    All membership interests in the DivCore CLO 2013-1 CRE CDO, together with the issuer's ordinary and...

    News Round-up    18 July 2016
  • Manager replacement rejected

    A second successor collateral manager has been rejected by Gramercy Real Estate CDO 2007-1 noteholde...

    Job Swaps    14 July 2016
  • SCI Start the Week - 11 July

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

    Pipeline Pipeline activity picked up again last week, with ABS leading the charge. There were nin...

    News    11 July 2016
  • Secondary markets advisors sought

    ESMA has published a call for candidates to form a consultative working group (CWG) for its secondar...

    Job Swaps    5 July 2016
  • SCI Start the Week - 4 July

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

    Pipeline Additions to the pipeline were limited once again last week, although two large Chinese de...

    News    4 July 2016
  • SCI Start the Week - 27 June

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

    Pipeline Pipeline additions were limited last week. The only ABS was €1bn Silver Arrow...

    News    27 June 2016
  • Second successor manager selected

    The holders of a majority of the controlling class of Gramercy Real Estate CDO 2007-1 have selected...

    Job Swaps    23 June 2016
  • SCI Start the Week - 20 June

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

    Pipeline The industry conference in Barcelona reduced primary market activity last week. There were...

    News    20 June 2016
  • MBIA-wrapped CDOs downgraded

    S&P has lowered the ratings on 11 classes of notes from six US CDOs to triple-C from single-...

    News Round-up    20 June 2016
  • MBIA Corp liquidity warning

    S&P has lowered its financial strength rating on MBIA Insurance Corp to triple-C from single...

    News Round-up    17 June 2016
  • Trups CDO cures slow

    Defaulted and deferring US Trups CDO exposures increased in Q1 for the first time since the beginnin...

    News Round-up    17 June 2016
  • SCI Start the Week - 13 June

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

    Pipeline The total number of deals joining the pipeline remained consistent last week, although ABS...

    News    13 June 2016