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.
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Mixed paper
US CLO market update
A BWIC of 68 line items is driving US CLO secondary market activity today, amidst a scarcity of prim...
Market Reports 26 October 2018 -
Reset end point?
US CLO market update
With almost 40 bonds out for the bid today, the secondary US CLO market is seeing heightened activit...
Market Reports 25 October 2018 -
Eastern incentive
European CLO market update
The European CLO market appears to be softening, following high volumes of equity out for the bid in...
Market Reports 24 October 2018 -
Bridge-loan lifeline
Greystone closes CRE CLO milestone
Greystone Bridge Lending Fund last month completed its second CRE CLO (see SCI’s primary i...
News Analysis 24 October 2018 -
CLOs in demand
Quarterly SCI data update
Analysis of SCI's databases underlines the significant demand for CLO paper seen in 3Q18, in...
News Analysis 23 October 2018 -
Latest SCI podcast now live
SCI podcast episode two has been released
SCI’s latest podcast is now live. This month the team discuss the African Development Bank...
News 18 October 2018 -
SCI Start the Week - 15 October
A review of securitisation activity over the past seven days
Market commentary Robust demand was seen in both the European and US CLO markets last week (SCI 9 O...
News 15 October 2018 -
Market moves - 12 October
Company hires and sector developments in structured finance
Cliff edge concerns ISDA has published a paper highlighting widespread concerns in Europe that the...
Market moves 12 October 2018 -
Manager differentiation?
US CLO primary market update
US CLO spreads are tightening, despite increased supply. Fresh primary market issuance is emerging d...
Market Reports 11 October 2018 -
Casting a wider net
US CLO managers target European opportunities
Although considerably smaller than the US, the European CLO market is on course for a post-crisis re...
News Analysis 10 October 2018 -
Little differentiation
European and US CLO market update
Robust demand is being seen in both the European and US CLO markets this week. Equity arbitrage is...
Market Reports 9 October 2018 -
SCI Start the Week - 8 October
A review of securitisation activity over the past seven days
Market commentary The European ABS primary market saw a lull in activity last week, which left some...
News 8 October 2018 -
Perfect ingredients
Liquidity boosts Euro CLO pipeline
Increased liquidity and strong demand suggest that the European CLO pipeline will continue to be bus...
News Analysis 5 October 2018 -
Double counting
US CLO primary market update
Up to 30 US CLO transactions are being prepped in the primary market this week, with four or five se...
Market Reports 4 October 2018 -
SCI Start the Week - 1 October
A look at the major activity in structured finance over the past seven days
Conference SCI’s 4th Annual Capital Relief Trades Seminar is taking place on 16 October...
News 1 October 2018 -
CDO misconduct alleged
Goldman Sachs in court over legacy CDO
Astra Asset Management is suing Goldman Sachs over allegations that the bank engaged in misconduct t...
News 28 September 2018 -
Widening spreads eyed
US CDO secondary market update
Several ABS CDO bonds are expected to be in high demand today, which have not been prevalent on the...
Market Reports 20 September 2018 -
Market moves - 31 August
The latest hires and company developments in the structured finance market
Acquisition Moody’s Corp is set to acquire all outstanding shares of Reis in an all-cash...
Market moves 31 August 2018 -
Market moves - 24 August
The week's structured finance hires and company developments, all in one place.
Consent solicitation NN Bank has issued a consent solicitation seeking investor approval for th...
Market moves 24 August 2018 -
Firms favour floating rate
Investors find value in range of SF asset classes
US investors are seeing relative value in a number of pre- and post-crisis securitised asset classes...
News Analysis 22 August 2018 -
Retail opportunity
Singapore CFO adds to PE fund investment products
The launch of the US$510m-equivalent Astrea IV collateralised fund obligation in June marked the fir...
News Analysis 21 August 2018