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.


  • 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
  • SCI Start the Week - 16 February

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

    Pipeline It was an understandably quiet week for the pipeline as market participants attended the a...

    News    16 February 2015
  • SCI Start the Week - 9 February

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

    PipelineA variety of deals joined the pipeline last week, with proposed issuance from the US, UK, Eu...

    News    9 February 2015
  • ABS CDO manager replaced

    Rabobank International has resigned from its role as collateral manager for Vermeer Funding II and d...

    Job Swaps    6 February 2015
  • CDO/CLO BWICs burst into life

    Today and tomorrow see a significant burst of CDO/CLO BWIC supply either side of the Atlantic that i...

    SCIWire    2 February 2015
  • Marginal decrease in Trups defaults

    The number of combined US bank Trups CDO defaults and deferrals marginally decreased to 21.1% at end...

    News Round-up    30 January 2015
  • US CLOs/CDOs stuck on repeat

    The US CLO/CDO secondary market appears stuck on repeat this week. "There's not a great d...

    SCIWire    29 January 2015
  • US CLOs/CDOs in discovery mode

    After a disrupted week the US CLO/CDO market is busy today, especially with many BWICs carried over...

    SCIWire    28 January 2015
  • SCI Start the Week - 26 January

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

    Pipeline A number of the deals which joined the pipeline last week then went on to price before the...

    News    26 January 2015
  • CDO claims set for distribution

    Cambridge Place Investment Management (CPIM) has disclosed that all claims relating to its allegatio...

    Job Swaps    20 January 2015
  • SCI Start the Week - 19 January

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

    Pipeline Last week saw a greater variety of deals join the pipeline than had done in the week befor...

    News    19 January 2015
  • CDO manager transferred

    Cairn Capital has replaced Cambridge Place Investment Management as collateral manager for the Cambe...

    Job Swaps    19 January 2015
  • US Trups list due today

    Today sees the first widely circulated Trups CDO BWIC of 2015. The six line $46.963m list is due a...

    SCIWire    12 January 2015
  • SCI Start the Week - 12 January

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

    Pipeline A number of US ABS deals have been announced for the start of the year. An ILS and an RMBS...

    News    12 January 2015
  • Taberna manager replaced

    TP Management has replaced Taberna Capital Management as collateral manager for both Taberna Preferr...

    Job Swaps    22 December 2014
  • Trups default rate unchanged

    The number of US bank Trups CDO combined defaults and deferrals remained at 22% at end-November, acc...

    News Round-up    16 December 2014
  • SCI Start the Week - 15 December

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

    Pipeline The pace of deals joining the pipeline noticeably slowed last week. At the final count the...

    News    15 December 2014
  • Trups credit quality improving

    The credit quality of Trups CDOs continued to improve in 3Q14, according to the latest Moody's repor...

    News Round-up    15 December 2014
  • Large liquidation list circulating

    A 55 line item US structured credit BWIC is circulating for trade at 10:00 New York time tomorrow. ...

    SCIWire    10 December 2014
  • Report calls for higher mezz charges

    A new report from the BIS states that a simple and transparent asset pool does not translate into me...

    News    8 December 2014
  • Slower start for CDO/CLO markets

    After a busy week last week, the CDO/CLO BWIC market begins more slowly this week with focus around...

    SCIWire    8 December 2014