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.

Credit crisis may boost Islamic banks

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.

Julius Finance Announces Independent CDO and Credit Derivatives Valuation Service

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.

Fitch: CDO Ratings Currently Reflect Potential CIT Loss

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.

IVRS Speeds Time to Market, Provides Faster Financial Analysis by Using CDO2 Technologies Powered by Sun Grid

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.

TD Securities & Grange Securities Ltd Launch Innovative Step-Up Callable CDO Squared Transaction for Australian Investors

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.

The Definitive Guide to CDOs

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.

Sun Sees Significant Momentum of Grid Computing in Financial Industry With CDO2 and Markit Running on Sun Grid

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.

Fitch Downgrades $642MM from Tigris CDO 2007-1, Ltd/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.

CDO2 Unlocks The Power of Sun(TM) Grid for Faster Financial Risk Simulation

Fitch rates four CDO squared transactions that use fixed recovery rates for the reference assets.

Fitch: Effect of Fannie & Freddie Credit Event on CDOs Likely To Be Muted

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.

TD Securities & Grange Securities Ltd Set Synthetic CDO Securitization Benchmark for Australian Investors

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.