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 - 3 December

  A review of securitisation activity over the past seven days

  Market commentary European ABS activity remained subdued last week, with spreads drifting wider, du...

  News    3 December 2018

• UK SLABS slated

  Sector developments and company hires

  EMEA Eurocastle Investment has appointed Hammad Khan to its board as a non-executive director, inc...

  Market moves    23 November 2018

• Softening activity

  European CLO market update

  The European CLO market is relatively quiet due to the Thanksgiving holiday in the US, but the pipel...

  Market Reports    22 November 2018

• CRT tranche downgraded

  Sector developments and company hires

  Acquisitions Spruce Finance has been acquired by HPS Investment Partners. Spruce will be headquart...

  Market moves    21 November 2018

• Hesitant appetite

  US CLO market update

  US CLO equity and double-B bonds were casualties of the drop in the S&P 500 index yesterday,...

  Market Reports    21 November 2018

• Buyer fatigue

  US CLO secondary market update

  The US stock market is 400 points down today (20 November) and is being described as an “u...

  Market Reports    20 November 2018

• Long goodbye

  First non-Libor linked ABS anticipated

  Lloyds became the first bank to issue a benchmark covered bond tied to the sterling overnight index...

  News Analysis    20 November 2018

• SCI Start the Week - 19 November

  A review of securitisation activity over the past seven days

  Market commentary Pepper Group is prepping an Australian RMBS that is expected to include a short U...

  News    19 November 2018

• Winding down?

  US CLO market update

  The US CLO primary market is seeing steady issuance as the remaining trading days continue to expire...

  Market Reports    15 November 2018

• SCI Start the Week - 12 November

  A review of securitisation activity over the past seven days

  Market commentary The Dilosk No. 2 Irish legacy RMBS was in focus in the European primary market la...

  News    12 November 2018

• Unpredictable factors

  Macro and micro challenges highlighted

  European market participants are facing three unpredictable factors in 2019, all of which will drive...

  News Analysis    9 November 2018

• CLO investor poached

  Company hires and sector developments in structured finance

  Acquisitions LibreMax Capital has entered into an agreement to acquire Trimaran Advisors and certa...

  Market moves    9 November 2018

• Midterm market

  US CLO market update

  High new issue volumes continue in the US CLO market, with managers paying more to get their deals a...

  Market Reports    8 November 2018

• Market moves update

  Sector developments and new hires in structured finance

  Acquisitions Franklin Templeton has acquired Benefit Street Partners, expanding its fixed income c...

  Market moves    30 October 2018

• SCI Start the Week - 29 October

  A review of securitisation activity over the past seven days

  Market commentary The US secondary CLO market saw heightened activity last week, with bid-lists cir...

  News    29 October 2018

• Mixed paper

  US CLO market update

  A BWIC of 68 line items is driving US CLO secondary market activity today, amidst a scarcity of prim...

  Market Reports    26 October 2018

• Reset end point?

  US CLO market update

  With almost 40 bonds out for the bid today, the secondary US CLO market is seeing heightened activit...

  Market Reports    25 October 2018

• Eastern incentive

  European CLO market update

  The European CLO market appears to be softening, following high volumes of equity out for the bid in...

  Market Reports    24 October 2018

• Bridge-loan lifeline

  Greystone closes CRE CLO milestone

  Greystone Bridge Lending Fund last month completed its second CRE CLO (see SCI’s primary i...

  News Analysis    24 October 2018

• CLOs in demand

  Quarterly SCI data update

  Analysis of SCI's databases underlines the significant demand for CLO paper seen in 3Q18, in...

  News Analysis    23 October 2018

• Latest SCI podcast now live

  SCI podcast episode two has been released

  SCI’s latest podcast is now live. This month the team discuss the African Development Bank...

  News    18 October 2018