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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 - 23 May

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

    Pipeline ABS additions to the pipeline carried on last week at a good pace, as 11 such deals joined...

    News    23 May 2016
  • CRE CDO manager replaced

    The holders of a majority of the outstanding principal amount of the controlling class of Gramercy R...

    Job Swaps    19 May 2016
  • CDO trading abuses alleged

    Megan Messina, a Bank of America md and co-head of structured credit products, has filed a discrimin...

    News    19 May 2016
  • SFIG adds advocacy leader

    SFIG has named Thomas McCrocklin as director of advocacy. He will report directly to executive direc...

    Job Swaps    18 May 2016
  • Fund targets new structured opportunities

    Semper Capital Management is prepping a new alternative asset strategy to seize new opportunities in...

    Job Swaps    18 May 2016
  • Taberna CDO served

    The trustee for Taberna Europe CDO II has served the issuer with a notice of default, stating that i...

    News Round-up    18 May 2016
  • US CLOs still becalmed

    The US CLO secondary market remains becalmed this week so far. After a fairly quiet end to last we...

    SCIWire    17 May 2016
  • Euro secondary slumbers again

    Yesterday saw another sleepy start to the week for the European securitisation secondary market. A...

    SCIWire    17 May 2016
  • SCI Start the Week - 16 May

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

    Pipeline While ABS additions to the pipeline were steady last week, they were joined by a greater v...

    News    16 May 2016
  • Faxtor CDOs transferred

    Dock Street Capital Management has replaced IMC Asset Management as collateral manager for a pair of...

    Job Swaps    16 May 2016
  • SCI Start the Week - 9 May

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

    Pipeline Last week's pipeline additions consisted of eight ABS, two RMBS and a single CMBS. The A...

    News    9 May 2016
  • SCI Start the Week - 25 April

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

    Pipeline Last week's pipeline additions were concentrated in ABS. There were six new ABS announced,...

    News    25 April 2016
  • Combo note RFC issued

    Moody's has proposed revisions to how it rates combination securities -...

    News Round-up    22 April 2016
  • Special situations analyst added

    TCW Group has appointed Steven Purdy to its fixed income credit research group as md and special sit...

    Job Swaps    20 April 2016
  • Trups defaults, deferrals fall

    The number of combined defaults and deferrals for US bank Trups CDOs decreased from 17.4% at the end...

    News Round-up    19 April 2016
  • SCI Start the Week - 18 April

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

    Pipeline Last week there were nine ABS deals added to the pipeline. A further three RMBS and two CM...

    News    18 April 2016
  • SCI Start the Week - 11 April

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

    Pipeline Pipeline activity picked up again last week. There were 10 ABS additions, as well as an...

    News    11 April 2016
  • Capital markets unit adds DCM director

    Macquarie Capital has appointed Warrick Booth as md in its European debt capital markets team. He wi...

    Job Swaps    7 April 2016
  • Trups CDO cap introduced

    Fitch has updated its rating criteria for Trups CDOs with the introduction of a performing credit en...

    News Round-up    6 April 2016
  • CDS pro shifts law firms

    Mayer Brown has added Douglas Donahue as a partner in its New York Office. He will contribute to the...

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

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

    Pipeline The week following Easter marked a slow-down in the pace of deals joining the pipeline. At...

    News    4 April 2016