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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 - 30 October

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

    Pipeline There were notably fewer pipeline additions last week. The final count consisted of an AB...

    News    30 October 2017
  • Job swaps round-up - 27 October

    Australia RMS has hired Pierre Wiart as md to its Sydney office, working on client relationships a...

    Job Swaps    27 October 2017
  • ABS rating effect explored

    Rating changes can have a significant impact on an ABS bond's price and value. While investors are l...

    News    24 October 2017
  • SCI Start the Week - 23 October

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

    Pipeline Additions to the pipeline last week were once again heavily skewed towards ABS. There were...

    News    23 October 2017
  • Job swaps round-up - 20 October

    Australia Baker McKenzie has recruited Duncan McGrath as a partner in its corporate group in Sydne...

    Job Swaps    20 October 2017
  • Interest growing in infrastructure

    Deutsche Asset Management subsidiary RREEF America has closed a US$431.3m managed project finance CD...

    News Analysis    20 October 2017
  • SCI Start the Week - 16 October

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

    Pipeline Additions to the pipeline last week were heavily skewed towards ABS. There were 20 ABS nam...

    News    16 October 2017
  • SCI Start the Week - 9 October

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

    Pipeline It was a quieter week for the pipeline, with activity noticeably down on the week before....

    News    9 October 2017
  • Job swaps round-up - 6 October

    North America Roy Guthrie is to succeed JP McNeill - who is transitioning into a long-te...

    Job Swaps    6 October 2017
  • US CLOs keep it light

    Volumes in the US CLO secondary market remain light, but spreads are still firm. "Not muc...

    SCIWire    3 October 2017
  • SCI Start the Week - 2 October

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

    Pipeline It was a busy week of comings and goings for the pipeline. At the close of Friday, 11 new...

    News    2 October 2017
  • SCI Start the Week - 25 September

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

    Pipeline Additions to the pipeline last week were fairly broadly split. There were five ABS added,...

    News    25 September 2017
  • SCI Start the Week - 18 September

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

    Pipeline There was greater variety to last week's pipeline additions, with significantly fewer ABS...

    News    18 September 2017
  • Job swaps round-up - 15 September

    EMEA Golden Tree Asset Management has opened an office in Sydney, hiring Russell Taylor as md to l...

    Job Swaps    15 September 2017
  • What rhymes with synthetic CDO?

    DealVector coo and co-founder Dave Jefferds suggests that synthetic CDOs may fulfil their potential ...

    Now that synthetic CDOs are back in vogue (SCI 15 August), will history repeat itself, or only rhyme...

    Talking Point    11 September 2017
  • SCI Start the Week - 11 September

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

    Pipeline There were several additions to the pipeline last week, with ABS accounting for most of th...

    News    11 September 2017
  • Job swaps round-up - 8 September

    EMEA Tiger Risk UK has hired Michael Wade as a non-executive chair of TigerRisk Capital Markets an...

    Job Swaps    8 September 2017
  • Euro secondary returns

    The European securitisation secondary market is beginning to return to life after the summer. Augu...

    SCIWire    7 September 2017
  • SCI Start the Week - 4 September

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

    Pipeline There were relatively few pipeline additions ahead of the Labor Day weekend. The final cou...

    News    4 September 2017
  • Debut CRE CLO closed

    Hunt Mortgage Group has closed its inaugural US$349.3m CRE CLO, dubbed Hunt CRE 2017-FL1. The transa...

    News    24 August 2017
  • SCI Start the Week - 21 August

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

    Pipeline Only a handful of transactions remained in the pipeline at the end of last week. The major...

    News    21 August 2017