A New ABS Index Boosts Synthetic CDOs

O'Connor, Colleen Marie
January 2006
Investment Dealers' Digest;1/30/2006, Vol. 72 Issue 4, p10
Trade Publication
The article reports on the impact of the launch of an asset-backed securities (ABS) index on synthetic collaterized debt obligations (CDO) in the United States. Analysts believe that synthetically references ABS could surpass issuance in cash-backed CDO of ABS in 2006. The reason for the rise of synthetic structures is that cash-backed CDO need to own the actual underlying securities as collateral. There are also not enough bonds to meet the demands of the growing CDO market.


Related Articles

  • Well-Heeled CDO Managers Stand Ground. G. S. // Bank Loan Report;4/28/2008, Vol. 23 Issue 17, p1 

    The article discusses the strong determination of established managers in collateralized debt obligations (CDOs) in the U.S. Barclays Capital noted that despite of the early troubles of CDO, strong players are still issuing four or more prior deals. Babson Capital manages more than 50 CDOs with...

  • The CDO Product. Ken Cheng // Securitization Conduit;2002, Vol. 5 Issue 1-4, p9 

    Collateralized debt obligations, or CDOs, are structured vehicles that are similar to leveraged closedend funds. Since their creation in the late 1980s, CDOs have evolved into three major classifications: cash flow CDOs; synthetic CDOs; and market value CDOs.

  • A Structured Finance Hangover. Haddigan, Bernard J. // National Real Estate Investor;May2008, Vol. 50 Issue 5, p116 

    The article explains what collateralized debt obligations (CDO) are. According to the author, CDOs are asset-backed structured credit products comprised of different tranches of fixed-income assets based on risk. The author adds that investment banks utilized the CDO to pool thousands of...

  • CDO PIPELINE - U.S. MARKET.  // Asset Securitization Report;10/11/2004, Vol. 4 Issue 39, p10 

    Presents a chart showing information on upcoming collateralized debt obligation issues in the United States, as of October 11, 2004. Size of each deal; Collateral manager; Assets; Banks; Credit enhancement; Deal type.

  • CDOS / RECENT PRICINGS U.S. MKT.  // Asset Securitization Report;10/11/2004, Vol. 4 Issue 39, p11 

    Presents a chart showing the pricing of collateralized debt obligations in the United States market, as of October 11, 2004. Deal size; Collateral manager; Deal type; Assets; Banks; Credit enhancement; AAA spreads.

  • Informed bids saught in CDO secondary. N.C. // Asset Securitization Report;12/13/2004, Vol. 4 Issue 48, p1 

    Reports on the improvement of the secondary collateralized debt obligations (CDO) in the U.S. in 2004. Maturity of the CDO market; Challenges in meeting the demand for reliable spread information.

  • Some CDO investors can't get enough equity. A. P. // Asset Securitization Report;9/19/2005, Vol. 5 Issue 35, p16 

    Reports that collateralized debt obligation (CDO) equity investors are asking for larger chunks than ever before, according to Banc of America Securities Managing Director Dik Blewitt; Increase in call options as companies jump to refinance their debt before the window of low rates is shut.

  • Hybrid CDO structures satisfy market need.  // Asset Securitization Report;11/21/2005, Vol. 5 Issue 44, p12 

    Reports on the state of the collateralized debt obligations (CDO) market in the U.S. Likelihood for investors to contribute to the volatility of the sector; Expectation for banks to constitute another source of growth in the sector; Potential for credit default swap index for collateralized...

  • CDO Managers Slip into Spectator Positions. G. S. // Asset Securitization Report;7/30/2007, Vol. 7 Issue 30, p7 

    The article reports that the dislocation in the collateralized debt obligations (CDO) market has posed a number of challenges for CDO managers trying to balance higher returns with palatable risk characteristics. As a result, CDO managers have recently been confined to surveillance. CDO managers...


Read the Article


Sorry, but this item is not currently available from your library.

Try another library?
Sign out of this library

Other Topics