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.


  • 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
  • SCI Start the Week - 8 December

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

    Pipeline There was a steady flow of deals into the pipeline last week as five ABS, five RMBS and fi...

    News    8 December 2014
  • SCI Start the Week - 1 December

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

    Pipeline The number of deals joining the pipeline last week was down on the week before as Thanksgi...

    News    1 December 2014
  • REIT promotes risk md

    Robert Rush has taken the role of chief risk officer at Two Harbors Investment Corp. Paul Richardson...

    Job Swaps    27 November 2014
  • Trups flurry expected to trade well

    The appearance of three Trups CDO BWICs due today has re-focused traders' attention on the asset cla...

    SCIWire    24 November 2014
  • SCI Start the Week - 24 November

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

    Pipeline A lot of deals joined the pipeline in the last full week before Thanksgiving. Unlike previ...

    News    24 November 2014
  • Cutwater integration underway

    Cutwater Asset Management Corp will continue to manage its eight CDOs, despite a change in control b...

    Job Swaps    21 November 2014
  • Eclectic list fails to trade again

    A large proportion of the re-issued large eclectic BWIC of European assets from a bad bank (SCIWire...

    SCIWire    19 November 2014
  • Trups defaults down again

    The number of combined defaults and deferrals for US bank Trups CDOs has slightly decreased to 22% a...

    News Round-up    18 November 2014
  • SCI Start the Week - 17 November

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

    Pipeline A lot of deals joined the pipeline last week, with a strong line-up of ABS leading the way...

    News    17 November 2014
  • Europe stays patchy

    European core and peripheral bonds across deal types continue to trade well where they do trade, but...

    SCIWire    14 November 2014
  • European eclectic list circulating again

    A 37 line €276.502m BWIC is circulating for trade next Wednesday at14:00 London time. The...

    SCIWire    13 November 2014
  • Europe shaking off its slumber?

    European secondary markets are attempting to shake off their pre-ABSPP slumber this morning with act...

    SCIWire    12 November 2014
  • Flurry of Trups CDO auctions due

    The next two days look to be busy ones by recent standards for the Trups CDO market, with a flurry o...

    SCIWire    11 November 2014
  • RFC issued on country risk revision

    Moody's is seeking comments on its proposed rating approach for transactions backed by a corporate p...

    News Round-up    7 November 2014
  • ABS CDO transferred

    Dock Street Capital Management has replaced Dynamic Credit Partners as collateral manager to Montere...

    Job Swaps    4 November 2014
  • Two Trups auctions announced

    In what is fast becoming a pattern, FDIC's announcement of its latest auction yesterday US afternoon...

    SCIWire    4 November 2014
  • Euro CLO selling to continue

    The European CLO BWIC pipeline is building up for this week beyond today and is expected to continue...

    SCIWire    3 November 2014
  • SCI Start the Week - 3 November

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

    Pipeline The number of deals joining the pipeline increased markedly last week. Remaining at the en...

    News    3 November 2014
  • Auction brings Trups defaults down

    The number of US bank Trups CDO combined defaults and deferrals decreased to 22.2% at end-September,...

    News Round-up    30 October 2014
  • Two Trups auctions today

    In addition to the previously mentioned 11:00 FDIC Trups CDO auction, today also sees a further mezz...

    SCIWire    30 October 2014