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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 - 21 December

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

    Pipeline The pipeline grew very quiet last week. The only deal to be added without disappearing bef...

    News    21 December 2015
  • Italian regs boost ABS

    The Bank of Italy's regulatory framework enacted in 2015 for financial intermediaries carrying out s...

    News Round-up    18 December 2015
  • State aid settled

    KBC is set to repay the Flemish Regional Government the full outstanding tranche of €2bn o...

    Job Swaps    17 December 2015
  • Trups defaults, deferrals stable

    The number of combined defaults and deferrals for US bank Trups CDOs was 18% at the end of November,...

    News Round-up    16 December 2015
  • SCI Start the Week - 14 December

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

    Pipeline The pace of pipeline additions slowed last week. The final count consisted of two ABS, an...

    News    14 December 2015
  • US CDO/CLO pick up

    The US CLO secondary market is picking up a little, while activity in the Trups CDO sector is outper...

    SCIWire    8 December 2015
  • SCI Start the Week - 7 December

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

    Pipeline Several deals joined the pipeline in the first week of December. The final count consisted...

    News    7 December 2015
  • European outlook improves

    European structured finance will benefit next year from an improved macroeconomic landscape, consume...

    News Round-up    1 December 2015
  • SCI Start the Week - 30 November

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

    Pipeline The pace of pipeline additions slowed last week due to Thanksgiving. The final count consi...

    News    30 November 2015
  • Trups CDOs quiet

    The US Trups CDO market is quiet again after a small flurry of BWIC activity last week. "It's pret...

    SCIWire    23 November 2015
  • Zohar bankruptcy filed

    Patriarch Partners has filed a Chapter 11 bankruptcy petition for Zohar CDO 2003-1. The fir...

    Job Swaps    23 November 2015
  • SCI Start the Week - 23 November

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

    Pipeline Last week it was RMBS and CMBS which dominated the pipeline's additions. In contrast to th...

    News    23 November 2015
  • Structured debt chief moves on

    Paul Hastings is set to add Paul Severs to its London office as a partner in its corporate practice....

    Job Swaps    17 November 2015
  • LatAm structured leader added

    Nomura has made three appointments to its emerging markets business in the Americas. Karan Madan, JP...

    Job Swaps    17 November 2015
  • Law firm adds CLO pro

    Ashurst has appointed Lawrence Berkovich as a partner in its US CLO team. He joins from Mayer Brown...

    Job Swaps    16 November 2015
  • SCI Start the Week - 16 November

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

    Pipeline Last week's pipeline additions were skewed to ABS and CMBS. There were nine of the former...

    News    16 November 2015
  • Trups defaults dip

    US bank Trups CDO combined defaults and deferrals marginally dropped to 18% at the end of October fr...

    News Round-up    16 November 2015
  • Israeli securitisation plan set out

    A joint report has been published by a number of Israeli government organisations which calls for th...

    News Round-up    13 November 2015
  • DMS names SF chief

    DMS Offshore Investment Services has appointed Murray McGregor as global head of structured finance....

    Job Swaps    13 November 2015
  • Credit assessment standards proposed

    The EBA, EIOPA and ESMA have jointly published two draft implementing technical standards (ITS) on c...

    News Round-up    12 November 2015
  • Euro secondary slow

    As expected, yesterday was a slow day in the European securitisation secondary market and today has...

    SCIWire    12 November 2015