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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.


  • 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
  • Rating agency adds sales chief

    Scope Ratings has appointed Sven Janssen to the newly-created role of chief sales and marketing offi...

    Job Swaps    1 April 2016
  • US CLOs busy

    Supply keeps on coming in the US CLO secondary market. "It's very busy day today, which is a funct...

    SCIWire    30 March 2016
  • Goldberg bolsters commercial practice

    Goldberg Segalla has brought in Louis Russo as partner and a member of its business and commercial p...

    Job Swaps    29 March 2016
  • Japanese rating upgrades increase

    The upgrade rate for Japanese structured finance securities rose in 2015, notes S&P. S&a...

    News Round-up    29 March 2016
  • Trups CDO defaults, deferrals flat

    US bank Trups CDO combined defaults and deferrals remained at 17.4% at end-February, according to Fi...

    News Round-up    23 March 2016
  • CDO assignments affirmed

    Moody's has determined that the deemed assignment of the collateral management agreements for Altius...

    Job Swaps    21 March 2016
  • ECB suggests regulatory tweaks

    The ECB has suggested changes to the new securitisation package proposed by the European Commission...

    News Round-up    15 March 2016
  • Indian distressed opportunities targeted

    The Canada Pension Plan Investment Board (CPPIB) and Kotak Mahindra Group have signed an agreement t...

    News Round-up    15 March 2016
  • Italian SPV rules amended

    The Bank of Italy has updated its supervisory instructions for banks and financial intermediaries co...

    News Round-up    14 March 2016