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 - 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

• 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