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 CLO coronavirus exposure mitigated

  Sector developments and company hires

  Euro CLO coronavirus exposure mitigated A portion (15%) of European CLO collateral is derived from...

  Market moves    27 March 2020

• Research head named

  Sector developments and company hires

  North America David Walker has joined CIFC as head of research, responsible for leading the firm&...

  Market moves    24 March 2020

• AXA IM creates two key units

  Sector developments and company hires

  AXA IM restructuring AXA Investment Managers intends to create a new €137bn business unit...

  Market moves    11 March 2020

• Dutch VAT grace period mulled

  Sector developments and company hires

  Alhambra missed payment A borrower of a €10m loan securitised in the Alhambra SME Funding...

  Market moves    10 March 2020

• Virus-related volatility

  European ABS market update

  The European securitisation market appears to be being affected by coronavirus-related volatility. S...

  Market Reports    6 March 2020

• Bulgarian micro loan guarantees inked

  Sector developments and company hires

  Bulgarian guarantees The EIF has signed new guarantee agreements with Unicredit Bulbank, United Bul...

  Market moves    4 March 2020

• IRPH index ruling 'credit negative'

  Sector developments and company hires

  CMBS property sales KBRA has been notified of the sale of 29 properties in the Eos (ELoC No. 35) CM...

  Market moves    3 March 2020

• DLT litigation ABS on the cards

  Sector developments and company hires

  Acquisition Pretium Partners has acquired the investment management business of Latigo Partners....

  Market moves    2 March 2020

• MSR subservicing transfer agreed

  Sector developments and company hires

  EMEA Michael Fiebig has been appointed coo at responsAbility Investments. Fiebig will be responsi...

  Market moves    27 February 2020

• Strong liquidity

  European CLO market update

  Liquidity continues to be strong in the European primary CLO market, with three deals pricing last w...

  Market Reports    25 February 2020

• Social factors

  Positive ESG scores for post-crisis vintages

  ESG relevance scores (ESG.RS) are more likely to be negative for seasoned securitisations, according...

  News    24 February 2020

• VAT switch

  European CLO managers hit with backdated bill

  Dutch tax authorities have changed their interpretation of VAT law in connection with CLO management...

  News    24 February 2020

• Minority equity interest acquired

  Sector developments and company hires

  Equity interest acquired Affiliated Managers Group has acquired a minority equity interest in Com...

  Market moves    20 February 2020

• Auction house

  Online AMR, BWIC matching services debut

  January was a breakthrough month for KopenTech for two reasons. Not only did the firm execute its fi...

  News Analysis    19 February 2020

• Ares co-founder steps down from board

  Sector developments and company hires

  North America Ares Management Corporation has appointed Kipp deVeer to its board. Concurrently, J...

  Market moves    17 February 2020

• Equity issue

  Loan repricing expectations weigh heavy on CLOs

  The widely expected wave of loan repricing is weighing heavily on the CLO market. Equity investors a...

  News Analysis    11 February 2020

• CMBS trustee assumption refuted

  Sector developments and company hires

  EMEA Michael Newell has joined Cadwalader, Wickersham & Taft as a partner in London. A me...

  Market moves    10 February 2020

• GSE Libor transition deadlines released

  Sector developments and company hires

  ECOWAS prepping ABS The Commission of the of the Economic Community of West African States (ECOWAS)...

  Market moves    6 February 2020

• Rating agency shuffles senior US staff

  Sector developments and company hires

  EMEA Pan-European special situations and credit trading lawyer Justin Conway has joined McCarthy De...

  Market moves    5 February 2020

• Advisor picked to help end GSE conservatorship

  Sector developments and company hires

  Acquisition Link Group has signed an agreement to acquire Pepper European Servicing from Pepper G...

  Market moves    4 February 2020

• Crestline Denali CLO interests acquired

  Sector developments and company hires

  Additional CLOs for Ares An Ares Management Corporation subsidiary is set to acquire a managing int...

  Market moves    3 February 2020