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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.


  • 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
  • SCI Start the Week - 15 February

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

    Pipeline As with the previous week, pipeline additions last week were dominated by ABS. There were...

    News    15 February 2016
  • SCI Start the Week - 8 February

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

    Pipeline Pipeline additions were heavily skewed to ABS last week. A total of 11 ABS deals were ad...

    News    8 February 2016
  • Patriarch resigns as Zohar manager

    Patriarch Partners is stepping down as collateral manager of Zohar CDO 2003-1, Zohar II 2005-1 and Z...

    Job Swaps    8 February 2016
  • SCI Start the Week - 1 February

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

    Pipeline The pipeline was slightly quieter last week as fewer deals joined and fewer deals left. At...

    News    1 February 2016
  • Law firm promotes SF pros

    Cadwalader has elected new partners and made promotions to special counsel, with a number of structu...

    Job Swaps    28 January 2016
  • Structured credit vets branch out

    Dean Atkins and Ian Robinson have been named co-heads of 400 Capital Management Europe, the new Lond...

    Job Swaps    27 January 2016
  • Euro secondary on the up

    Activity and pricing levels are on the up in some sectors of the European securitisation secondary m...

    SCIWire    27 January 2016
  • Trups defaults drop again

    Combined defaults and deferrals for US bank Trups CDOs decreased to 17.5% at the end of December, af...

    News Round-up    26 January 2016
  • SCI Start the Week - 25 January

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

    Pipeline ABS deals accounted for more than half of last week's pipeline additions. There were six n...

    News    25 January 2016
  • STS securitisation supported

    The European Economic and Social Committee (EESC) has added its voice to calls for the introduction...

    News Round-up    22 January 2016
  • EBA consults on 'implicit support'

    The EBA has launched a consultation regarding its guidelines on implicit support for securitisation...

    News Round-up    21 January 2016
  • Manager invests in structured experience

    Alberta Investment Management Corporation (AIMCo) has strengthened its relationship with DFG Investm...

    Job Swaps    21 January 2016
  • Swaps allow for higher ratings

    Cross-currency swaps that mitigate the effect of foreign exchange controls have enabled Moody's to a...

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

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

    Pipeline The pipeline continued to build last week as a number of new deals were added. At the fina...

    News    18 January 2016
  • Green bond RFC issued

    Moody's has issued a request for comment on its proposed approach and methodology for evaluating an...

    News Round-up    15 January 2016
  • US CLOs still searching

    The US CLO secondary market is still searching for pricing clarity, meanwhile Trups CDOs are generat...

    News Analysis    14 January 2016
  • AXA IM boosts SF team

    AXA Investment Mangers has appointed The Duy Nguyen as senior portfolio manager. He will be based in...

    Job Swaps    14 January 2016
  • 'Drag-along' rights disputed

    In adjourned meetings, subordinate noteholders of Panther CDO III, IV and V last week passed an extr...

    Job Swaps    12 January 2016
  • SCI Start the Week - 11 January

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

    Pipeline Pipeline additions picked up last week as market participants returned to their desks fo...

    News    11 January 2016
  • SEC punishes insider trading

    The US SEC has prohibited Steven Cohen from supervising funds that manage outside money until 2018 i...

    Job Swaps    11 January 2016