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.

• 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

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  Market Reports    24 October 2018

• Bridge-loan lifeline

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  News Analysis    24 October 2018

• CLOs in demand

  Quarterly SCI data update

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  News Analysis    23 October 2018

• Latest SCI podcast now live

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  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

• Perfect ingredients

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  News Analysis    5 October 2018

• Double counting

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  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

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  News    1 October 2018

• CDO misconduct alleged

  Goldman Sachs in court over legacy CDO

  Astra Asset Management is suing Goldman Sachs over allegations that the bank engaged in misconduct t...

  News    28 September 2018