LOGIN
 

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.


  • 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
  • SCI Start the Week - 14 March

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

    Pipeline Last week's pipeline additions were heavily weighted toward ABS. There were seven new ABS,...

    News    14 March 2016
  • ECB looks to provide boost

    A new set of measures announced by the ECB could boost ABS supply. The central bank is launching a s...

    News    11 March 2016
  • Euro secondary sidelined

    The improving macro picture has so far failed to encourage the majority of participants back into th...

    SCIWire    9 March 2016
  • Opportunistic credit fund launched

    La Française Global Investment Solutions has launched a multi-strategy long/short credit fu...

    News Round-up    8 March 2016
  • Deleveraging drives Trups improvement

    Moody's reports that the credit quality of Trups CDOs continued to improve in 2015 due to deleveragi...

    News Round-up    8 March 2016
  • Oaktree targets Aussie growth

    Oaktree Capital Group has opened an office in Sydney, Australia. Byron Beath has joined the firm as...

    Job Swaps    8 March 2016
  • SCI Start the Week - 7 March

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

    Pipeline With many market participants decamped to Las Vegas for the industry conference, pipeline...

    News    7 March 2016
  • Associations confirm STS support

    AFME, the European Fund and Asset Management Association (EFAMA), the International Capital Market A...

    News Round-up    3 March 2016
  • Sky Road, Virtus link products

    Sky Road has added an enhanced trade processing feature for CLO and loan portfolio management to its...

    News Round-up    2 March 2016
  • Structured credit analyst promoted

    Moody's has named Al Remeza associate md and head of its US structured credit new ratings team withi...

    Job Swaps    1 March 2016
  • SCI Start the Week - 29 February

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

    Pipeline The number of ABS deals joining the pipeline slowed last week. The distribution across sec...

    News    29 February 2016
  • Disputed swaps case due

    BNY Mellon Corporate Trustee Services and Citicorp Trustee Company have commenced proceedings in the...

    Job Swaps    26 February 2016
  • Brexit implications weighed

    The UK will hold a referendum on 23 June to decide whether to stay within the EU. Uncertainty about...

    News    25 February 2016
  • US CLO spike

    The US CLO secondary market is seeing a spike in activity today. "Today is busier as month-end com...

    SCIWire    24 February 2016
  • FSC, RiverNorth unlock horns

    Fifth Street Finance Corp (FSC) has entered into an agreement with RiverNorth Capital Management und...

    Job Swaps    23 February 2016
  • CRE CDO transferred

    RE CDO Management has assigned its interest in the collateral management agreement for Sorin Real Es...

    Job Swaps    22 February 2016
  • SCI Start the Week - 22 February

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

    PipelinePipeline entrants were dominated by ABS issuers last week. A handful of CDOs/CLOs and CMBS d...

    News    22 February 2016
  • Trups defaults keep low

    Combined defaults and deferrals for US bank Trups CDOs remained at 17.4% at the end of January, acco...

    News Round-up    19 February 2016
  • Euro ABS/MBS split

    There continues to be a strong split in where activity is taking place in the European ABS/MBS secon...

    SCIWire    18 February 2016
  • ABS trader recruited

    Natixis has brought in Peter Cui as a director, trading ABS and CLOs. He moves from Jefferies, where...

    Job Swaps    17 February 2016