CDO


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CDO

Collateralized Debt Obligation

An asset-backed security backed by the receivables on loans, bonds, or other debt. Banks package and sell their receivables on debt to investors in order to reduce the risk of loss due to default. Returns on CDOs are paid in tranches; that is, the individual loans backing each CDO have different levels of risk, and investors are paid out according to the level of risk they have acquired. Banks offer higher interest rates to investors willing to buy CDOs backed by higher-risk loans. From a bank's perspective, in addition to reducing risk, CDOs also reduce their capital requirements because they can raise funds through the issue of CDOs. While, theoretically, CDOs can be backed by mortgages, one usually refers to these as collateralized mortgage obligations.

CDO

References in periodicals archive ?
By implementing a Numerix and CDO Software solution, Aladdin is now equipped with the technical infrastructure needed to make better informed investment decisions," said Sunay Shah, CEO and co-founder of CDO Software.
The wider partnership between Numerix and CDO Software includes Numerix powered pricing and risk solutions for synthetic CDO's, synthetic CLO's, CDS, LCDS, bonds and loans.
Not only is this consistent with our strategy of financing all of our business lines through match funded structures, but CDO VI, like CDO IV, has the added benefit of significant re-investment flexibility for the next five years and a structure that will allow us to continue to select the portion of the capital structure that provides the most attractive risk/return profile.
Our consistent issuance in the CDO market, and the strong performance of the underlying collateral of our transactions, has resulted in the ability to significantly decrease the weighted average interest rate on CDOs of this type from approximately LIBOR plus 0.
The CDO loan collateral has migrated away from subordinate debt.
The CDO is well within all of its geographic location covenants with 20.
GKK purchased the loan at par plus accrued and plans on restructuring the loan outside the CDO.
An updated profile report and full CDO Asset manager (CAM) report will be available at www.
7 billion, consisting of 25 structured products including nine CLOs, one structured loan fund, 10 ABS CDOs, and five investment-grade bond CDOs.
Terwin closed its first mezzanine ABS CDO, Glacier Funding CDO I, in March 2004.
RREF CDO 206-1 will have a five-year reinvestment period, during which principal proceeds may be used to invest in substitute collateral subject to certain covenants and reinvestment parameters outlined in the governing documents.
NEW YORK -- Fitch Ratings has published a leveraged loan CDO asset manager rating report on PPM America Inc.