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.
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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