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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.


  • 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

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    Increased liquidity and strong demand suggest that the European CLO pipeline will continue to be bus...

    News Analysis    5 October 2018
  • Double counting

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    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

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    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

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    Market moves    31 August 2018
  • Market moves - 24 August

    The week's structured finance hires and company developments, all in one place.

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    Market moves    24 August 2018
  • Firms favour floating rate

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    News Analysis    22 August 2018
  • Retail opportunity

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    News Analysis    21 August 2018
  • Market moves - 10 August

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    News    10 August 2018
  • Market moves - 3 August

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    Acquisitions Savills Investment Management is set to acquire a 25% interest in DRC Capital. In ad...

    News    3 August 2018
  • SCI Start the Week - 23 July

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

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    News    23 July 2018
  • Market moves - 20 July

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  • SCI Start the Week - 16 July

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

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    News    16 July 2018
  • SCI Start the Week - 9 July

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

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    News    9 July 2018
  • SCI Start the Week - 25 June

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

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    News    25 June 2018
  • SCI Start the Week - 18 June

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

    Pipeline A mixed bag of securitisations remained in the pipeline at the end of last week. ABS once...

    News    18 June 2018
  • SCI Start the Week - 11 June

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

    Pipeline Non-auto related ABS deals have dominated the pipeline recently. Indeed, transactions repr...

    News    11 June 2018
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    Chinese securitisation issuance surged to a record high in 2017 but significant challenges remain. O...

    News Analysis    4 June 2018
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    News    29 May 2018