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.


  • 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
  • SCI Start the Week - 6 July

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

    Pricings While there were no additions to the pipeline last week, new issuance was dominated by CLO...

    News    6 July 2015
  • Dock Street set to take on CDO

    Dock Street Capital Management has been put forward as successor collateral manager for Crystal Cove...

    Job Swaps    2 July 2015
  • CDO manager replaced

    Vanderbilt Capital Advisors has resigned from its role as collateral manager for Bristol CDO I and d...

    Job Swaps    1 July 2015
  • Valuations team beefs up

    MountainView IPS has added Alvin Hsu in a vp role and Alex Kolesnikoff in a senior analyst role. The...

    Job Swaps    25 June 2015
  • ABS CDO manager removed

    The controlling class noteholder of Crystal Cove CDO has directed the issuer to terminate and remove...

    Job Swaps    25 June 2015
  • 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