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.

• 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

• Euro secondary solid

  Last week closed on a solid note in the European securitisation secondary market. Secondary spread...

  SCIWire    11 January 2016

• Justifiable reliance affirmed

  The purchaser of an unrated junior tranche in the CDO transaction STACK 2006-1 adequately pled justi...

  News    8 January 2016

• DCM duo drafted in

  Cantor Fitzgerald has appointed Kevin Reynolds and Timothy Swift to lead its debt capital markets or...

  Job Swaps    7 January 2016

• Distressed debt vet enlisted

  Cerberus Capital Management has appointed David Abrams as senior md of Cerberus UK Advisors. He will...

  Job Swaps    7 January 2016

• EM credit team spins off

  Argentem Creek Partners has completed a management buyout from Black River Asset Management. Argente...

  Job Swaps    7 January 2016

• European counterparty concerns resolved

  S&P has removed from creditwatch negative its ratings on 21 tranches in eight European CDOs...

  News Round-up    6 January 2016

• Special counsel named

  Schulte Roth & Zabel has promoted Jay Williams to special counsel in the New York office, wh...

  Job Swaps    6 January 2016