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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Long goodbye
First non-Libor linked ABS anticipated
Lloyds became the first bank to issue a benchmark covered bond tied to the sterling overnight index...
News Analysis 20 November 2018 -
SCI Start the Week - 19 November
A review of securitisation activity over the past seven days
Market commentary Pepper Group is prepping an Australian RMBS that is expected to include a short U...
News 19 November 2018 -
Winding down?
US CLO market update
The US CLO primary market is seeing steady issuance as the remaining trading days continue to expire...
Market Reports 15 November 2018 -
SCI Start the Week - 12 November
A review of securitisation activity over the past seven days
Market commentary The Dilosk No. 2 Irish legacy RMBS was in focus in the European primary market la...
News 12 November 2018 -
Unpredictable factors
Macro and micro challenges highlighted
European market participants are facing three unpredictable factors in 2019, all of which will drive...
News Analysis 9 November 2018 -
CLO investor poached
Company hires and sector developments in structured finance
Acquisitions LibreMax Capital has entered into an agreement to acquire Trimaran Advisors and certa...
Market moves 9 November 2018 -
Midterm market
US CLO market update
High new issue volumes continue in the US CLO market, with managers paying more to get their deals a...
Market Reports 8 November 2018 -
Market moves update
Sector developments and new hires in structured finance
Acquisitions Franklin Templeton has acquired Benefit Street Partners, expanding its fixed income c...
Market moves 30 October 2018 -
SCI Start the Week - 29 October
A review of securitisation activity over the past seven days
Market commentary The US secondary CLO market saw heightened activity last week, with bid-lists cir...
News 29 October 2018 -
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