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 - 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

• SCI Start the Week - 27 July

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

  Pipeline The pace of pipeline additions was steady last week, although there was more variety in th...

  News    27 July 2015

• Dock Street continues CDO grab

  Cambridge Place Investment Management is set to be replaced as collateral manager for the Camber 3 A...

  Job Swaps    20 July 2015

• SCI Start the Week - 20 July

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

  PipelinePipeline activity continued to normalise last week. There were eight ABS, five RMBS and five...

  News    20 July 2015

• SCI Start the Week - 13 July

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

  Pipeline A number of deals joined the pipeline last week. These were largely ABS and CLOs, although...

  News    13 July 2015

• Sterne Agee loses two

  Michael Krull has joined Seer Capital Management as md and portfolio manager. He arrives from Sterne...

  Job Swaps    7 July 2015