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.

• 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

• Job swaps round-up - 18 August

  North America Redwood Trust has appointed Dashiell Robinson to the newly formed position of evp, o...

  Job Swaps    18 August 2017

• Bespoke boost opportunity

  The search for yield is driving activity in bespoke CDS tranches, referred to as bespoke tranche opp...

  News Analysis    15 August 2017

• SCI Start the Week - 14 August

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

  Pipeline Additions to the pipeline last week were balanced between ABS and CMBS. There were five of...

  News    14 August 2017

• Job swaps round-up - 11 August

  North America John DiRocco has joined CIFC as coo, overseeing non-investment functions, as well as...

  Job Swaps    11 August 2017

• Innovative CRE CLO marketing

  Bancorp Bank is marketing a US$314.4m static commercial real estate CLO, backed by 24 floating-rate...

  News    11 August 2017

• Highly concentrated Trups CDOs see mezz recovery

  Trups CDOs remain an attractive source of capital for community bank issuers, but ratings are increa...

  News    10 August 2017

• SCI Start the Week - 7 August

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

  Pipeline ABS deals accounted for more than half of last week's pipeline additions. There were seven...

  News    7 August 2017

• Job swaps round-up - 4 August

  North America Hunton & Williams has promoted a pair of litigation lawyers with securitisat...

  Job Swaps    4 August 2017

• Libor gives CLOs pause

  UK FCA ceo Andrew Bailey last week suggested that financial markets should transition away from Libo...

  News    31 July 2017

• SCI Start the Week - 31 July

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

  Pipeline The rate of pipeline additions stayed consistent last week. There were six new ABS, five R...

  News    31 July 2017

• SCI Start the Week - 24 July

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

  PipelineA mix of ABS, RMBS and CMBS hit the pipeline last week. There were US$1bn-plus deals announc...

  News    24 July 2017

• Job swaps round-up - 21 July

  Acquisitions BGC Partners has acquired commercial real estate finance company Berkeley Point Financ...

  Job Swaps    21 July 2017

• SCI Start the Week - 17 July

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

  Pipeline Pipeline activity stepped up again last week. The additions consisted of eight ABS, an I...

  News    17 July 2017

• Job swaps round-up - 14 July

  North America Mortgage Capital Trading has hired Bill Berliner to the newly created role of direct...

  Job Swaps    14 July 2017