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.

  • 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
  • SCI Start the Week - 17 December

    A review of securitisation activity over the past seven days

    Market commentary European CMBS BWIC activity swelled after the Taurus 2018-3 DEU deal priced last...

    News    17 December 2018
  • Running dry

    Euro CLO secondary market update

    The European CLO primary pipeline is running dry. Traders are increasingly looking at BWIC activity...

    Market Reports    14 December 2018
  • Selling spike

    US CLO market update

    There has been a spike in selling of investment grade paper on the US CLO secondary market, coming m...

    Market Reports    11 December 2018
  • Reaching capacity

    New CLO managers continue flocking to Europe

    Seven new CLO managers are warehousing assets, with European CLO platforms ready to issue in 1Q19. M...

    News Analysis    7 December 2018
  • Deals pulled?

    US CLO market update

    Several US CLO deals are believed to have been pulled from the pipeline and pushed back to 2019, ami...

    Market Reports    6 December 2018
  • Cheaper deals

    European CLO market update

    The European CLO market seems stronger than it was last week, but still relatively volatile. &...

    Market Reports    5 December 2018
  • Print and sprint

    US CLO market update

    US CLO BWIC activity is booming ahead of tomorrow’s market holiday in honour of former pre...

    Market Reports    4 December 2018
  • Sustainable growth?

    Prospects for green CLOs examined

    Green CLOs are expected to play an increasing role in the private sector’s involvement in...

    News    4 December 2018
  • Proportional approach

    ESAs tackle delay in transparency requirements

    The joint European Supervisory Authorities (ESAs) - which consist of the EBA, ESMA and the European...

    News    4 December 2018
  • SCI Start the Week - 3 December

    A review of securitisation activity over the past seven days

    Market commentary European ABS activity remained subdued last week, with spreads drifting wider, du...

    News    3 December 2018
  • UK SLABS slated

    Sector developments and company hires

    EMEA Eurocastle Investment has appointed Hammad Khan to its board as a non-executive director, inc...

    Market moves    23 November 2018
  • Softening activity

    European CLO market update

    The European CLO market is relatively quiet due to the Thanksgiving holiday in the US, but the pipel...

    Market Reports    22 November 2018