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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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