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.


  • ABS CDO auction due

    An auction will be conducted for Belle Haven ABS CDO 2006-1 on 20 June. The collateral shall only be...

    News Round-up    3 June 2014
  • ABS CDOs on the block

    Auctions for the Kleros Preferred Funding and Trainer Wortham First Republic CBO V deals have been s...

    News Round-up    2 June 2014
  • Pre-crisis losses decline

    The turnaround of the US housing market has led to a sizeable decline in pre-crisis global securitis...

    News Round-up    28 May 2014
  • CBO tender launched

    HoldCo CDO Opportunities Fund has commenced a tender offer to purchase for cash all of the outstandi...

    News Round-up    27 May 2014
  • Trups CDO defaults, deferrals decline

    The number of combined defaults and deferrals for US bank Trups CDOs declined to 24.4% at end-April,...

    News Round-up    23 May 2014
  • MBIA upgrades lift SF ratings

    Moody's has upgraded the ratings of 199 structured finance securities wrapped by MBIA Insurance Corp...

    News Round-up    22 May 2014
  • CDO liquidations set

    Several CDOs are set to be redeemed in the coming weeks. First, at least two bids for each sub-pool...

    News Round-up    13 May 2014
  • CMBS supply centres on A4s, AJs

    US CMBS bid-list volume came in at around US$175m yesterday, slightly lower than it had been at the...

    Market Reports    13 May 2014
  • ABS CDOs on the block

    Auctions will be conducted for the RFC CDO II and III transactions on 2 June. The collateral shall o...

    News Round-up    12 May 2014
  • Duke CDO manager replaced

    Dock Street Capital Management has been appointed as successor collateral manager for Duke Funding H...

    Job Swaps    9 May 2014
  • CFO update finalised

    Moody's has published an update to the methodology it uses to rate transactions backed by hedge fund...

    News Round-up    7 May 2014
  • Pricing partnership formed

    SCI has launched a partnership with Intex to provide INTEXcalc users with free trial access to SCI P...

    News Round-up    7 May 2014
  • Improved performance seen across CRE

    Delinquency rates continued to decline quarter-over-quarter due to improving economic conditions and...

    News Round-up    7 May 2014
  • RFC issued on Trups CDOs

    Moody's is seeking comments on proposed updates to its rating approach for Trups CDOs. If adopted, t...

    News Round-up    7 May 2014
  • ABS CDO auction due

    An auction has been scheduled for Margate Funding I on 20 May. The collateral shall only be sold if...

    News Round-up    30 April 2014
  • Trups deferrals continue to cure

    The number of US bank Trups CDO combined defaults and deferrals declined to 24.5% at end-March, comp...

    News Round-up    29 April 2014
  • CDOs on the block

    An auction call redemption auction is to be conducted with respect to the ICONS CDO. The auction cal...

    News Round-up    28 April 2014
  • SCI Start the Week - 28 April

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

    Pipeline Several new deals joined the pipeline last week once Easter had passed. Among them were an...

    News    28 April 2014
  • Asset manager adds CDO pro

    Structured products specialist Maxime Malaure has joined Napier Park Capital as a director in its Eu...

    Job Swaps    25 April 2014
  • CDO auctions due

    A couple of CDO auctions have been scheduled so far for next month. The first is for the Trups CDO P...

    News Round-up    23 April 2014
  • CSO manager resigns

    The portfolio manager and portfolio verification agent for Athenée CDO series 2007-10 Hunte...

    Job Swaps    23 April 2014