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 BWICs pick up again

    The European BWIC calendar is picking up again for today and the remainder of this week. As was th...

    SCIWire    23 March 2015
  • Slight decline for Trups defaults

    The number of US bank Trups CDO combined defaults and deferrals marginally decreased to 20.7% at end...

    News Round-up    17 March 2015
  • Liquidation list looms

    The hectic pace in European secondary securitisation markets looks set to continue today with six BW...

    SCIWire    13 March 2015
  • Dutch prime slows as CLOs pick up

    European secondary markets continue to see discrete activity with Dutch prime the latest area to see...

    SCIWire    11 March 2015
  • SCI Start the Week - 9 March

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

    Pipeline Deals stayed in the pipeline a little longer last week. At Friday's end there were 10 new...

    News    9 March 2015
  • SME-backed CDO criteria updated

    Fitch has updated its global rating criteria for CDOs backed by loans to SMEs. The updates particula...

    News Round-up    9 March 2015
  • Limited tender take-up

    Mizuho has accepted for purchase €11m of Proventus European ABS CDO bonds via its tender o...

    News Round-up    6 March 2015
  • Euro secondary sees pockets of activity

    European secondary is still quiet overall, but there are pockets of activity "It continues to be v...

    SCIWire    4 March 2015
  • SCI Start the Week - 2 March

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

    Pipeline Many of last week's pipeline additions priced briskly, leaving only a short list of new ad...

    News    2 March 2015
  • European BWIC boom

    After a quieter day on the BWIC front yesterday European securitisation markets are set for a boom i...

    SCIWire    26 February 2015
  • Synthetic CDO notes tendered

    Mizuho Bank has launched a tender offer for the six outstanding tranches of notes issued by Proventu...

    News Round-up    24 February 2015
  • Belle Haven list circulating

    It's a quiet start to the week for the US CDO/CLO BWIC market, but today does include a list consist...

    SCIWire    23 February 2015
  • SCI Start the Week - 23 February

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

    PipelineSeveral new deals have been announced in the wake of the recent conference. Last week there...

    News    23 February 2015
  • US CLOs see direction

    US CLO secondary activity picked up after a slow start yesterday and found some direction for oil-re...

    SCIWire    20 February 2015
  • Fraud charge for CDO liquidations

    The US SEC has charged VCAP Securities and its ceo Brett Graham with fraudulently deceiving other ma...

    News Round-up    20 February 2015
  • CRE performance positive

    All US CRE sectors performed well in 4Q14, according to Moody's. The agency says performance was sup...

    News Round-up    20 February 2015
  • Euro CLOs keep coming

    Today sees another healthy chunk of European CLOs in for the bid. Yesterday again saw strong BWIC...

    SCIWire    19 February 2015
  • EMEA losses better US rate

    The estimated total losses from European securitisation bonds are small relative to those of the US,...

    News Round-up    18 February 2015
  • Call for comments on TRACE expansion

    The comment period on FINRA's proposal to expand TRACE trade reporting to include CMBS securities, a...

    News Round-up    17 February 2015
  • Euro CLO BWICs building

    The auction calendar for European CDOs/CLOs is building strongly for this week. Increasing seconda...

    SCIWire    16 February 2015
  • Trups default drop minimal

    US bank Trups CDO combined defaults and deferrals marginally decreased to 21% at end-January, accord...

    News Round-up    16 February 2015