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.


  • 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
  • Big list trades well

    Yesterday's US$7bn legacy auction saw bonds generically trading at a couple of points higher than ta...

    News Round-up    29 October 2014
  • Primus seeks voluntary liquidation

    Primus Guaranty is convening a special general meeting of shareholders on 20 November, for the purpo...

    Job Swaps    28 October 2014
  • Trups trade well

    Yesterday's Trups CDO BWIC traded well and at the same time the latest FDIC list was announced. Th...

    SCIWire    28 October 2014
  • More Trups today

    Another Trups CDO BWIC is circulating for trade today at 14:00 New York time. The $12.5m 13 line l...

    SCIWire    27 October 2014
  • Large list to dominate

    Tuesday's large liquidation BWIC is set to dominate traders' attention across asset classes either s...

    SCIWire    24 October 2014
  • Trups CDOs stabilise

    The US Trups CDO market has stabilised after last week's volatility and bid lists have been well-rec...

    SCIWire    23 October 2014
  • Illiquid action

    The CDO and CLO markets are attracting plenty of sellers at the moment, particularly in illiquid bon...

    SCIWire    23 October 2014
  • Another Trups mezz auction

    Another mezz Trups CDO BWIC has emerged for this week to complement the FDICs 12th auction on Thursd...

    SCIWire    22 October 2014
  • FDIC auction announced

    The 12th FDIC auction of Trups CDOs has been announced and set for Thursday at 11:00 New York. The l...

    SCIWire    21 October 2014
  • More mezz Trups

    A second mezzanine Trups CDO BWIC is now circulating for trade after today's FDIC auction at 11:00 N...

    SCIWire    16 October 2014
  • SCI Start the Week - 13 October

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

    Pipeline Several deals joined the pipeline last week. These included seven ABS, two RMBS, three CMB...

    News    13 October 2014
  • FDIC returns to mezz

    The 11th FDIC Trups CDO BWIC sees the agency return to mezz paper following two less enthusiasticall...

    SCIWire    13 October 2014
  • SCI Start the Week - 6 October

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

    PipelineA large number of deals joined the pipeline last week. At the last count there were seven AB...

    News    6 October 2014
  • Triaxx withdraws Countrywide objection

    The attorneys for the Triaxx entities have withdrawn as intervenor-respondents in the US$8.5bn Count...

    News Round-up    2 October 2014
  • FDIC brings some life to Trups CDOs

    A quiet week in US Trups CDOs is set to be enlivened by the ninth FDIC auction today at 11:00 New Yo...

    SCIWire    2 October 2014
  • Cantor adds CLO trader

    Cantor Fitzgerald has appointed Ervin Pilku as an md. He will be based in New York and focus on trad...

    Job Swaps    2 October 2014
  • SF impairments hit post-crisis low

    The global structured finance 2013 new impairment count declined to 1,138 from 2,189 in 2012, accord...

    News Round-up    2 October 2014
  • Final KBC CDOs unwound

    KBC says it has collapsed the two remaining CDOs in its portfolio, freeing up €300m in cap...

    News Round-up    1 October 2014
  • Structured credit pro added

    John Niblo has joined PineBridge Investments as portfolio manager. He was formerly principal at Rigi...

    Job Swaps    1 October 2014
  • RFC issued on insurance-linked funds

    AM Best is requesting comment from market participants on a new draft criteria report relating to in...

    News Round-up    30 September 2014