CDO squared

CDO squared

A CDO in which the underlying asset pool contains tranches of other CDOs.

CDO Squared

Slang; a collateralized debt obligation collateralized by other collateralized debt obligations rather than directly by debt. A CDO squared may have less risk than a regular CDO, as it has more underlying debts.
References in periodicals archive ?
The really complex products like CDO squared, which has such a remote link from the asset that you can't tell when it is defaulting, can't happen in Islamic finance because debt cannot qualify as an asset," said Dubai-based law firm Clifford Chance head of capital markets Debashis Dey.
The new service provides independent valuation of synthetic CDOs, CDO squared, CPDOs and other credit derivatives for credit traders, credit risk managers, auditors, legal professionals and controllers.
No master level CDO squared tranches would suffer losses in the 40% recovery stress; however, master level credit enhancement levels would erode or cross subordination mechanisms would begin to absorb losses in 45 tranches of CDO squareds.
CDOSheet(R) allows users to harness the power of grid computing to price and risk manage CDO and CDO squared tranches using simple spreadsheet functions.
LONDON, November 4 /PRNewswire/ -- Following the successful completion of the recent Kosciuszko transaction, TD Securities and Grange Securities Limited have teamed up again to launch what is believed to be the first step-up callable CDO squared transaction targeted at the Australian investor base.
An analysis of the current CDO valuation approaches, such as the One-Factor Gaussian Copula Model, Copula extensions, Levy processes, Markov Models, as well as CDO squared and CPDO valuation.
Users are able to harness the power of utility computing to price and risk manage CDO and CDO squared tranches via the Internet using simple spreadsheet functions.
Tigris 2007-1 is a cash flow SF CDO squared (CDO of CDOs) that closed on March 15, 2007 and is managed by Harding Advisory LLC.
With the company's CDOSheet application, users are able to price and risk manage structured credit products (CDO and CDO squared tranches) from a spreadsheet.
Fitch rates four CDO squared transactions that use fixed recovery rates for the reference assets.
TORONTO, September 9 /PRNewswire/ -- TD Securities and Grange Securities Limited have teamed up to launch what is believed to be the first three year CDO squared transaction for the Australian investor base.
Awasthi ran the CDO Squared platform on the structuring side at Citigroup, where he specialized in complex cash/synthetic transactions across the bank debt and structured credit space.