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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.


  • CDO manager steps in again

    Dock Street Capital Management has replaced Vanderbilt Capital Advisors as the collateral manager fo...

    Job Swaps    14 September 2015
  • Dock Street steps in for CDO

    Dock Street Capital Management is taking over as collateral manager for Kleros Preferred Funding. Ve...

    Job Swaps    10 September 2015
  • CDO settlement 'credit positive'

    Taberna Capital Management's recent settlement with the SEC in relation to charges made over its fra...

    News Round-up    7 September 2015
  • SCI Start the Week - 7 September

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

    Pipeline Last week six ABS, five RMBS, one CMBS and two CLOs were added to the pipeline. The CMBS w...

    News    7 September 2015
  • Fee fraud settlement reached

    The US SEC has approved a settlement concerning Taberna Capital Management (TCM) and its alleged inv...

    Job Swaps    3 September 2015
  • SCI Start the Week - 24 August

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

    Pipeline Primary market activity was limited last week, with three new ABS and a single CLO added t...

    News    24 August 2015
  • Trups defaults steady

    The number of US bank Trups CDO combined defaults and deferrals remained at 18.8% at the end of July...

    News Round-up    21 August 2015
  • Counterparty-linked review underway

    S&P has placed 70 RMBS, 10 CDO, six CLO and five ABS tranches from Europea...

    News Round-up    19 August 2015
  • Hedge fund fraud settled

    Two Citigroup affiliates have agreed to pay nearly US$180m to the US SEC to settle charges that they...

    Job Swaps    18 August 2015
  • SCI Start the Week - 17 August

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

    Pipeline There were fewer additions to the pipeline last week than there had been the week before....

    News    17 August 2015
  • Structured credit pro tapped

    Lloyds has bolstered its financial institutions business with the appointment of Thomas Sandberg as...

    Job Swaps    14 August 2015
  • SCI Start the Week - 10 August

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

    Pipeline Pipeline activity picked up again last week, with significant ABS additions. There were...

    News    10 August 2015
  • RFC on CMBS rating enhancements

    Moody's is requesting comments on three proposed enhancements to its approach to rating multi-borrow...

    News Round-up    7 August 2015
  • Law firm boosts SF expertise

    Rupert Wall has joined Sidley Austin as a partner in its global finance practice. His focus is on st...

    Job Swaps    4 August 2015
  • SCI Start the Week - 3 August

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

    Pipeline The pace of deals joining the pipeline slowed last week. At the final count there were 11...

    News    3 August 2015
  • Global CLO approach updated

    Fitch has updated its global rating criteria for CLOs and corporate CDOs. The update includes an exp...

    News Round-up    31 July 2015
  • CDS trader switches banks

    Basile Delaville has joined Deutsche Bank to trade CDS indexes. He arrives from Bank of America, whe...

    Job Swaps    30 July 2015
  • Trups defaults drop again

    The number of US bank Trups CDO combined defaults and deferrals marginally decreased to 19.3% at end...

    News Round-up    30 July 2015
  • Error corrected for PF CDO

    S&P has taken a number of credit rating actions in relation to the Stichting PROFILE Securit...

    News Round-up    29 July 2015
  • Hiking cycle history considered

    As the likely Fed rate hike date draws nearer, Barclays ABS analysts have examined the performance o...

    News    28 July 2015
  • CLO consultant tapped

    Eric Bothwell has joined Ashurst as a senior consultant within its CLO practice. He arrives as md fr...

    Job Swaps    28 July 2015