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.


  • 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
  • US CDOs in focus

    It looks set to be a busy day today in US CDOs across Trups, CRE and ABS deals. In terms of Trups...

    SCIWire    29 September 2014
  • Trups defaults, deferrals decline

    The number of combined defaults and deferrals for US bank Trups CDOs decreased slightly from 22.7% a...

    News Round-up    23 September 2014
  • SCI Start the Week - 22 September

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

    Pipeline Two ABS, two RMBS, two CMBS and six CLOs entered the pipeline last week. The ABS comprised...

    News    22 September 2014
  • No demand for eclectic list

    The 40 line €185m eclectic BWIC list of ABS, CDOs, CFOs, SME CLOs, CMBS and RMBS failed to...

    SCIWire    17 September 2014
  • Latest FDIC auction on the block

    Results of the seventh FDIC auction of Trups CDOs were released late yesterday and the eighth has al...

    SCIWire    17 September 2014
  • Taberna settlement agreed

    RAIT Financial Trust has agreed in principle to resolve a US SEC investigation concerning its subsid...

    Job Swaps    17 September 2014
  • Eclectic euro list circulating

    The market's continuing appetite for all things European seemingly irrespective of deal type could m...

    SCIWire    16 September 2014
  • Differing days for European CDOs and CLOs

    European CDOs and CLOs saw differing results yesterday and the latter looks set for another good day...

    SCIWire    11 September 2014
  • Mixed result for synthetic CRE CDOs

    Two of the HLCN synthetic CRE CDOs on BWIC today traded and two did not. Nevertheless, another synth...

    SCIWire    10 September 2014
  • Trapeza judgement 'positive' for Trups CDOs

    A court decision last week in favour of Trapeza Capital Management is positive for holders of Trups...

    News Round-up    10 September 2014
  • Credit manager adds trader

    Highland Capital Management has hired Chris Hayes as a loan and high yield bond trader. He will be b...

    Job Swaps    10 September 2014
  • CDO/CLO BWIC pipeline builds

    On the back of rising prices in Europe and increasingly strong bids in many sectors in the US yester...

    SCIWire    10 September 2014
  • FDIC offers triple-As

    The FDIC's Trups CDO auction process will reach its seventh iteration with an auction scheduled for...

    SCIWire    9 September 2014
  • ABS CDO on the block

    An auction will be conducted for the Bluegrass ABS CDO II on 27 September. The collateral shall only...

    News Round-up    9 September 2014
  • SCI Start the Week - 8 September

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

    PipelineThe first week of September saw the pace of deals joining the pipeline quicken. The week's a...

    News    8 September 2014
  • CLOs/CDOs ease back in

    The CLO/CDO BWIC market eased back into its stride through the course of yesterday's US afternoon wi...

    SCIWire    3 September 2014
  • Rare outing for synthetic CRE CDOs

    A BWIC list has begun circulating containing four tranches of Halcyon's synthetic CRE CDOs: 25m of H...

    SCIWire    2 September 2014
  • CDOs on the block

    Auctions will be conducted for Kleros Preferred Funding and Trainer Wortham First Republic CBO V on...

    News Round-up    1 September 2014
  • SCI Start the Week - 1 September

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

    PipelineAugust ended with a quiet week, as just three new deals joined the pipeline. These consisted...

    News    1 September 2014
  • Corporate trust service beefs up

    Stuart Draper has joined Global Loan Agency Services as director, business development. He was previ...

    Job Swaps    29 August 2014