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.

• 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

  Liquidity boosts Euro CLO pipeline

  Increased liquidity and strong demand suggest that the European CLO pipeline will continue to be bus...

  News Analysis    5 October 2018

• Double counting

  US CLO primary market update

  Up to 30 US CLO transactions are being prepped in the primary market this week, with four or five se...

  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

  Conference SCI’s 4th Annual Capital Relief Trades Seminar is taking place on 16 October...

  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

• Widening spreads eyed

  US CDO secondary market update

  Several ABS CDO bonds are expected to be in high demand today, which have not been prevalent on the...

  Market Reports    20 September 2018

• Market moves - 31 August

  The latest hires and company developments in the structured finance market

  Acquisition Moody’s Corp is set to acquire all outstanding shares of Reis in an all-cash...

  Market moves    31 August 2018

• Market moves - 24 August

  The week's structured finance hires and company developments, all in one place.

  Consent solicitation NN Bank has issued a consent solicitation seeking investor approval for th...

  Market moves    24 August 2018

• Firms favour floating rate

  Investors find value in range of SF asset classes

  US investors are seeing relative value in a number of pre- and post-crisis securitised asset classes...

  News Analysis    22 August 2018

• Retail opportunity

  Singapore CFO adds to PE fund investment products

  The launch of the US$510m-equivalent Astrea IV collateralised fund obligation in June marked the fir...

  News Analysis    21 August 2018

• Market moves - 10 August

  Company developments and new hires in the structured finance sector

  CDOs transferred Dock Street Capital Management has replaced Deerfield Capital Management as collat...

  News    10 August 2018

• Market moves - 3 August

  Company developments and new hires in the structured finance sector

  Acquisitions Savills Investment Management is set to acquire a 25% interest in DRC Capital. In ad...

  News    3 August 2018

• SCI Start the Week - 23 July

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

  Pipeline The pipeline returned to full flow last week. Unusually, CMBS accounted for the majority o...

  News    23 July 2018

• Market moves - 20 July

  A weekly breakdown of new hires and company developments in the global structured finance industry.

  Acquisition agreed Stone Point Capital’s Trident VII fund is set to acquire Sabal Capita...

  Market moves    20 July 2018

• SCI Start the Week - 16 July

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

  Pipeline Marketing of new securitisations continued to gain momentum last week, following the Indep...

  News    16 July 2018

• SCI Start the Week - 9 July

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

  Pipeline With 4 July having a typically big impact on the issuance calendar, the pipeline was ligh...

  News    9 July 2018

• SCI Start the Week - 25 June

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

  Pipeline The securitisations remaining in the pipeline at the end of last week were fairly evenly s...

  News    25 June 2018