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.

• Pre-summer rush

  European ABS market update

  Activity levels are currently high across the European ABS/MBS and CLO markets and that looks set to...

  Market Reports    3 July 2019

• Line-up takes shape

  Middle market CLO seminar to include private debt panel

  The line-up for SCI’s 1st Annual Middle Market CLO Seminar on 26 June is taking shape. Sup...

  News    17 June 2019

• Alternative structures

  CLO managers seeking greater flexibility

  Managers’ desire for greater flexibility - in order to navigate the current challenging cr...

  News Analysis    10 June 2019

• Heading in the right direction

  US CLO market update

  The US CLO market is making up some lost ground after a tough start to the year. “We&...

  Market Reports    16 May 2019

• First SOFR-indexed MBS tranche inked

  Sector developments and company hires

  Claims predictability to improve? The Florida legislature last month passed a bill to reform the re...

  Market moves    2 May 2019

• Opportunities eyed

  Trups CDO manager targets Europe

  EJF Capital is eyeing opportunities in Europe, as bank consolidation pressures grow and rates contin...

  News    26 April 2019

• Value investing

  Tim Gramatovich, cio of Gateway Credit Partners, answers SCI's questions

  Q: How and when did Gateway Credit Partners become involved in the securitisation market? A: Gatewa...

  The Structured Credit Interview    23 April 2019

• BWIC boom

  Quarterly SCI data update

  The first quarter of a year is usually quieter than the previous quarter and, for the most part, 1Q1...

  News Analysis    11 April 2019

• Addressing the arb

  CLO structural innovations aim at wider investor base

  European CLO issuance totalled approximately €7.73bn in Q1, comprising 16 new issues and tw...

  News Analysis    5 April 2019

• Rocket fuelled?

  Middle market CLOs on upward trajectory

  The acquisition of Antares Capital by the Canada Pension Plan Investment Board (CPPIB) in 2015 injec...

  News Analysis    18 March 2019

• REMIC route

  Unusual CRE CLO prepped

  Bancorp is in the market with an unusual static CRE CLO dubbed Bancorp 2019-CRE5. The US$518.3m tran...

  News    7 March 2019

• Improved tone

  European and US CLO market update

  A better tone in the CLO market has emerged on both sides of the Atlantic post SFIG Vegas. Mezzanine...

  Market Reports    5 March 2019

• New fund for CDS recruit

  Company hires and sector developments

  ABL acquisition Benefit Street Partners affiliate Business Development Corporation of America has a...

  Market moves    28 February 2019

• Stand-out performer

  Systematic role for structured credit

  Funds focused on structured credit were, as a whole, stand-out performers in 2018. Of the 50 US stru...

  News Analysis    21 February 2019

• TruPS flurry

  CLO activity expected to pick up post-conference

  US CLO activity is relatively quiet after a long weekend but is expected to pick up after ABS Vegas....

  News    20 February 2019

• CLOs retain top ranking

  Quarterly SCI data update

  CLOs remained the top asset class in terms of deal count for European and US new issuance in 4Q18, a...

  News Analysis    24 January 2019

• Latest SCI podcast available

  SCI podcast episode four is now live

  SCI’s latest podcast is now live. This month the team round up asset class performance fro...

  News    21 January 2019

• Middle march

  Boost for middle market and hybrid CLOs

  The US SEC’s no-action letter in connection with a recent Golub Capital CLO paves the way...

  News Analysis    21 December 2018

• Cross-currency basis

  US CLO market update

  All but a few US CLO new issues have been postponed until 2019, although at least one deal is set to...

  Market Reports    19 December 2018

• Investor indigestion

  US CMBS widening on 2019 anxiety

  A recent CRE CLO transaction brought to the market was sidelined until a later date after spread lev...

  News    19 December 2018

• Japanese dependence

  European ABS market update

  European ABS markets have effectively closed for the year. Deals in the pipeline are now expected to...

  Market Reports    19 December 2018