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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 Monitor guidance released

    A new S&P report provides guidance on how to form an example spreadsheet that incorporates t...

    News Round-up    25 June 2015
  • New manager for ABS CDO

    Dock Street Capital Management has been appointed as successor collateral manager to Fort Sheridan A...

    Job Swaps    19 June 2015
  • CLO structurer brought in

    A former GreensLedge director has moved to Deutsche Bank to take up a CLO structuring role in London...

    Job Swaps    19 June 2015
  • Anchorage closes 'unique' deal

    Anchorage Capital Group's newest deal - Anchorage Credit Funding 1 - has a numbe...

    News Round-up    18 June 2015
  • Lehman payments due

    Liquidators PPB Advisory has made a final call for claims from potential CDO creditors of the Lehman...

    News Round-up    17 June 2015
  • CDO holdings divested

    Zions Bancorporation says it has sold the remainder of its CDO holdings. The move is expected to sub...

    Job Swaps    17 June 2015
  • Successful ED project 'requires support'

    While the European DataWarehouse (ED) has continued to make strides over the last 12 months, data sh...

    News    16 June 2015
  • SCI Start the Week - 15 June

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

    Pipeline It was another busy week for the pipeline. There were nine new ABS added - inclu...

    News    15 June 2015
  • Trups default drop continues

    The number of US bank Trups CDO combined defaults and deferrals decreased marginally to 19.7% at the...

    News Round-up    15 June 2015
  • ABS CDO manager resigns

    Vertical Capital has resigned as collateral manager of Kleros Preferred Funding. Pursuant to Section...

    Job Swaps    12 June 2015
  • SCI Start the Week - 8 June

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

    Pipeline Another Chinese deal joined the pipeline last week. It was one of six newly announced ABS,...

    News    8 June 2015
  • SF practice beefed up

    Shearman & Sterling has hired Charles Thompson as counsel in its structured finance group. H...

    Job Swaps    4 June 2015
  • CDO manager exchanged

    Dock Street Capital Management has taken over Delaware Investment Advisors' role as collateral manag...

    Job Swaps    3 June 2015
  • Trups flurry

    A flurry of US Trups CDO BWICs are circulating for trade this week. There are currently three Trup...

    SCIWire    1 June 2015
  • SCI Start the Week - 1 June

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

    Pipeline Several deals joined the pipeline during the holiday-shortened week, including a Chinese a...

    News    1 June 2015
  • Trading duo reunited

    Brean Capital has hired Rich Barry and Reggie Fernandez as mds in its fixed income sales and trading...

    Job Swaps    1 June 2015
  • Euro secondary subdued

    A distracted European securitisation secondary market looks to be closing the week in subdued manner...

    SCIWire    29 May 2015
  • CDO manager takes over

    Vanderbilt Capital Advisors has resigned from its role as collateral manager for six transactions, w...

    Job Swaps    21 May 2015
  • Euro ABS/MBS builds up steam

    The European ABS/MBS secondary market looks to be building up a head of steam. Yesterday was, as e...

    SCIWire    19 May 2015
  • SCI Start the Week - 18 May

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

    Pipeline It was another active week for the pipeline. At the final count there were 13 new ABS, one...

    News    18 May 2015
  • Euro ABS/MBS shows caution

    Some signs of caution are entering the European ABS/MBS secondary market, but it may not last. The...

    SCIWire    18 May 2015