SlideShare a Scribd company logo

CDO: Collateralized Debt Obligation

•Download as PPT, PDF•
•
F
financedude
Economy & FinanceBusiness
1 of 15
CDO: Collateralized Debt Obligation The New Choice in Global Reinsurance
Contents ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Why Consider CDOs? ,[object Object],[object Object],[object Object]
Growth in CDO Volume
[object Object],[object Object],[object Object],[object Object],[object Object],What is a CDO?
Generic CDO Structure CDO Special Purpose Vehicle (SPV) Subordinated Notes Equity Mezzanine Fixed or Floating Rate Notes Senior Fixed or Floating Rate Notes Diversified Pool of Underlying Assets (Collateral) Collateral Manager
Example of CDO Tranching Equity 40M BB 5M BBB 47M AA 49M AAA 370M A High Yield CLO arranged by Bear Sterns. ( Eaton Vance )
Example of CDO Tranching Equity 20M BB 5M BBB 15M A 10M AA 22.5M AAA 15M “ Super Senior” 912.5M CDO arranged by Bear Sterns where underlying collateral is investment grade. ( Meliorbanca Parthenon I ) Equity to AAA 87.5M BBB57% AA 4% A 39%
Types of CDOs ,[object Object],[object Object],[object Object],[object Object],[object Object]
Types of CDO Collateral ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Who Buys CDOs? ,[object Object],[object Object]
CDO Advantages ,[object Object],[object Object],[object Object]
CDO vs. Bond Spreads (to the Swap Curve)
CDO Downsides ,[object Object],[object Object]
Market Yields on Identically Rated Bonds ,[object Object],[object Object],[object Object]

Recommended

Topic 3 Risk Return And Sml
Topic 3 Risk Return And SmlTopic 3 Risk Return And Sml
Topic 3 Risk Return And Smlshengvn
 
Derivatives introduction
Derivatives introductionDerivatives introduction
Derivatives introductionRudreshSamant
 
Asset Liability Management
Asset Liability ManagementAsset Liability Management
Asset Liability ManagementVikram Sankhala IIT, IIM, Ex IRS, FRM, Fin.Engr
 
Liquidity Risk.pptx
Liquidity Risk.pptxLiquidity Risk.pptx
Liquidity Risk.pptxTANIMAAHMED3
 
Collateralized Debt Obligations Presentation Final Version!
Collateralized Debt Obligations Presentation Final Version!Collateralized Debt Obligations Presentation Final Version!
Collateralized Debt Obligations Presentation Final Version!James_A_McDaniel
 
Portfolio analysis selection; portfolio theory, return portfolio risk, effici...
Portfolio analysis selection; portfolio theory, return portfolio risk, effici...Portfolio analysis selection; portfolio theory, return portfolio risk, effici...
Portfolio analysis selection; portfolio theory, return portfolio risk, effici...Ravi kumar
 
Mutual Fund
Mutual FundMutual Fund
Mutual FundDeepak Pati
 
Causes of 2009 financial crisis in us
Causes of 2009 financial crisis in usCauses of 2009 financial crisis in us
Causes of 2009 financial crisis in usKardan university, kabul , Afghanistan
 

Recommended

Topic 3 Risk Return And Sml
Topic 3 Risk Return And SmlTopic 3 Risk Return And Sml
Topic 3 Risk Return And Smlshengvn
 
Derivatives introduction
Derivatives introductionDerivatives introduction
Derivatives introductionRudreshSamant
 
Asset Liability Management
Asset Liability ManagementAsset Liability Management
Asset Liability ManagementVikram Sankhala IIT, IIM, Ex IRS, FRM, Fin.Engr
 
Liquidity Risk.pptx
Liquidity Risk.pptxLiquidity Risk.pptx
Liquidity Risk.pptxTANIMAAHMED3
 
Collateralized Debt Obligations Presentation Final Version!
Collateralized Debt Obligations Presentation Final Version!Collateralized Debt Obligations Presentation Final Version!
Collateralized Debt Obligations Presentation Final Version!James_A_McDaniel
 
Portfolio analysis selection; portfolio theory, return portfolio risk, effici...
Portfolio analysis selection; portfolio theory, return portfolio risk, effici...Portfolio analysis selection; portfolio theory, return portfolio risk, effici...
Portfolio analysis selection; portfolio theory, return portfolio risk, effici...Ravi kumar
 
Mutual Fund
Mutual FundMutual Fund
Mutual FundDeepak Pati
 
Causes of 2009 financial crisis in us
Causes of 2009 financial crisis in usCauses of 2009 financial crisis in us
Causes of 2009 financial crisis in usKardan university, kabul , Afghanistan
 
Mutual Fund
Mutual FundMutual Fund
Mutual FundNaresh Kumar
 
Mutual Funds
Mutual FundsMutual Funds
Mutual Fundsadityakandala
 
CDO, CDS and American Crisis
CDO, CDS and American CrisisCDO, CDS and American Crisis
CDO, CDS and American CrisisManas Upadhyay
 
Capital Markets
Capital MarketsCapital Markets
Capital MarketsDisha Bhatia
 
Capital asset pricing model
Capital asset pricing modelCapital asset pricing model
Capital asset pricing modelAnuj Bhatia
 
financial intermediaries and its types
financial intermediaries and its typesfinancial intermediaries and its types
financial intermediaries and its typesranjitha1nair
 
Derivatives - Delta Gamma Vega Theta Rho
Derivatives - Delta Gamma Vega Theta RhoDerivatives - Delta Gamma Vega Theta Rho
Derivatives - Delta Gamma Vega Theta RhoAmeya Ranadive
 
Defensive tactics agains merger and acquistion
Defensive tactics agains merger and acquistionDefensive tactics agains merger and acquistion
Defensive tactics agains merger and acquistionAttiq Khan
 
ppt on mutual funds
ppt on mutual fundsppt on mutual funds
ppt on mutual fundsdeekshasharma921677
 
performance of mutual funds
performance of mutual fundsperformance of mutual funds
performance of mutual fundsnitesh tandon
 
Subprime Mortgage Crisis Powerpoint Presentation Slides
Subprime Mortgage Crisis Powerpoint Presentation SlidesSubprime Mortgage Crisis Powerpoint Presentation Slides
Subprime Mortgage Crisis Powerpoint Presentation SlidesSlideTeam
 
Mishkin fmi9ge ppt_c11
Mishkin fmi9ge ppt_c11Mishkin fmi9ge ppt_c11
Mishkin fmi9ge ppt_c11Dr. Muath Asmar
 
FIM - Credit Derivatives PPT
FIM - Credit Derivatives PPTFIM - Credit Derivatives PPT
FIM - Credit Derivatives PPTBishnu Kumar
 
Venture Capital and Private Equity
Venture Capital and Private EquityVenture Capital and Private Equity
Venture Capital and Private EquityPooja Patel
 
Project On Derivatives
Project On DerivativesProject On Derivatives
Project On Derivativesindira 7
 
MUTUAL FUND INVESTMENT.ppt
MUTUAL FUND INVESTMENT.pptMUTUAL FUND INVESTMENT.ppt
MUTUAL FUND INVESTMENT.pptSana Mushtaque
 
Mutual funds
Mutual fundsMutual funds
Mutual fundsAkshay Samant
 
Mishkin fmi9ge ppt_c01
Mishkin fmi9ge ppt_c01Mishkin fmi9ge ppt_c01
Mishkin fmi9ge ppt_c01Dr. Muath Asmar
 
Markowitz Portfolio Selection
Markowitz Portfolio SelectionMarkowitz Portfolio Selection
Markowitz Portfolio Selectionmerzak emerzak
 
International financial markets and institutions
International financial markets and institutionsInternational financial markets and institutions
International financial markets and institutionsJaswinder Singh
 
Presentation on securitization
Presentation on securitizationPresentation on securitization
Presentation on securitizationbuddingbachelor
 
Asset Backed Securitization
Asset Backed SecuritizationAsset Backed Securitization
Asset Backed SecuritizationImran Fayyaz
 

More Related Content

What's hot

CDO, CDS and American Crisis
CDO, CDS and American CrisisCDO, CDS and American Crisis
CDO, CDS and American CrisisManas Upadhyay
 
Capital asset pricing model
Capital asset pricing modelCapital asset pricing model
Capital asset pricing modelAnuj Bhatia
 
financial intermediaries and its types
financial intermediaries and its typesfinancial intermediaries and its types
financial intermediaries and its typesranjitha1nair
 
Derivatives - Delta Gamma Vega Theta Rho
Derivatives - Delta Gamma Vega Theta RhoDerivatives - Delta Gamma Vega Theta Rho
Derivatives - Delta Gamma Vega Theta RhoAmeya Ranadive
 
Defensive tactics agains merger and acquistion
Defensive tactics agains merger and acquistionDefensive tactics agains merger and acquistion
Defensive tactics agains merger and acquistionAttiq Khan
 
performance of mutual funds
performance of mutual fundsperformance of mutual funds
performance of mutual fundsnitesh tandon
 
Subprime Mortgage Crisis Powerpoint Presentation Slides
Subprime Mortgage Crisis Powerpoint Presentation SlidesSubprime Mortgage Crisis Powerpoint Presentation Slides
Subprime Mortgage Crisis Powerpoint Presentation SlidesSlideTeam
 
FIM - Credit Derivatives PPT
FIM - Credit Derivatives PPTFIM - Credit Derivatives PPT
FIM - Credit Derivatives PPTBishnu Kumar
 
Venture Capital and Private Equity
Venture Capital and Private EquityVenture Capital and Private Equity
Venture Capital and Private EquityPooja Patel
 
Project On Derivatives
Project On DerivativesProject On Derivatives
Project On Derivativesindira 7
 
MUTUAL FUND INVESTMENT.ppt
MUTUAL FUND INVESTMENT.pptMUTUAL FUND INVESTMENT.ppt
MUTUAL FUND INVESTMENT.pptSana Mushtaque
 
Markowitz Portfolio Selection
Markowitz Portfolio SelectionMarkowitz Portfolio Selection
Markowitz Portfolio Selectionmerzak emerzak
 
International financial markets and institutions
International financial markets and institutionsInternational financial markets and institutions
International financial markets and institutionsJaswinder Singh
 

What's hot (20)

Mutual Fund
Mutual FundMutual Fund
Mutual Fund
 
Mutual Funds
Mutual FundsMutual Funds
Mutual Funds
 
CDO, CDS and American Crisis
CDO, CDS and American CrisisCDO, CDS and American Crisis
CDO, CDS and American Crisis
 
Capital Markets
Capital MarketsCapital Markets
Capital Markets
 
Capital asset pricing model
Capital asset pricing modelCapital asset pricing model
Capital asset pricing model
 
financial intermediaries and its types
financial intermediaries and its typesfinancial intermediaries and its types
financial intermediaries and its types
 
Derivatives - Delta Gamma Vega Theta Rho
Derivatives - Delta Gamma Vega Theta RhoDerivatives - Delta Gamma Vega Theta Rho
Derivatives - Delta Gamma Vega Theta Rho
 
Defensive tactics agains merger and acquistion
Defensive tactics agains merger and acquistionDefensive tactics agains merger and acquistion
Defensive tactics agains merger and acquistion
 
ppt on mutual funds
ppt on mutual fundsppt on mutual funds
ppt on mutual funds
 
performance of mutual funds
performance of mutual fundsperformance of mutual funds
performance of mutual funds
 
Subprime Mortgage Crisis Powerpoint Presentation Slides
Subprime Mortgage Crisis Powerpoint Presentation SlidesSubprime Mortgage Crisis Powerpoint Presentation Slides
Subprime Mortgage Crisis Powerpoint Presentation Slides
 
Mishkin fmi9ge ppt_c11
Mishkin fmi9ge ppt_c11Mishkin fmi9ge ppt_c11
Mishkin fmi9ge ppt_c11
 
FIM - Credit Derivatives PPT
FIM - Credit Derivatives PPTFIM - Credit Derivatives PPT
FIM - Credit Derivatives PPT
 
Venture Capital and Private Equity
Venture Capital and Private EquityVenture Capital and Private Equity
Venture Capital and Private Equity
 
Project On Derivatives
Project On DerivativesProject On Derivatives
Project On Derivatives
 
MUTUAL FUND INVESTMENT.ppt
MUTUAL FUND INVESTMENT.pptMUTUAL FUND INVESTMENT.ppt
MUTUAL FUND INVESTMENT.ppt
 
Mutual funds
Mutual fundsMutual funds
Mutual funds
 
Mishkin fmi9ge ppt_c01
Mishkin fmi9ge ppt_c01Mishkin fmi9ge ppt_c01
Mishkin fmi9ge ppt_c01
 
Markowitz Portfolio Selection
Markowitz Portfolio SelectionMarkowitz Portfolio Selection
Markowitz Portfolio Selection
 
International financial markets and institutions
International financial markets and institutionsInternational financial markets and institutions
International financial markets and institutions
 

Viewers also liked

Presentation on securitization
Presentation on securitizationPresentation on securitization
Presentation on securitizationbuddingbachelor
 
Asset Backed Securitization
Asset Backed SecuritizationAsset Backed Securitization
Asset Backed SecuritizationImran Fayyaz
 
Cdo Training Session (2)
Cdo Training Session (2)Cdo Training Session (2)
Cdo Training Session (2)theprofet
 
Cdo short explain
Cdo short explainCdo short explain
Cdo short explaincamilos11
 
MBS CMO Presentation
MBS CMO PresentationMBS CMO Presentation
MBS CMO Presentationnashy2k
 
Mortgage Backed Security
Mortgage Backed SecurityMortgage Backed Security
Mortgage Backed Securitynpunde
 
[Goldman Sachs] A mortgage product primer
[Goldman Sachs] A mortgage product primer[Goldman Sachs] A mortgage product primer
[Goldman Sachs] A mortgage product primer3mag1
 
CDO Webinar: 2017 Trends in Data Strategy
CDO Webinar: 2017 Trends in Data StrategyCDO Webinar: 2017 Trends in Data Strategy
CDO Webinar: 2017 Trends in Data StrategyDATAVERSITY
 
Holding and subsidiary company.
Holding and subsidiary company.Holding and subsidiary company.
Holding and subsidiary company.Zahid Mohammed
 
Introduction To Bonds
Introduction To BondsIntroduction To Bonds
Introduction To BondsAlan Anderson
 
Bond valuation
Bond valuationBond valuation
Bond valuationOnline
 
Valuation of Bonds and Shares
Valuation of Bonds and SharesValuation of Bonds and Shares
Valuation of Bonds and SharesBiswajit Ghosh
 

Viewers also liked (20)

Presentation on securitization
Presentation on securitizationPresentation on securitization
Presentation on securitization
 
Asset Backed Securitization
Asset Backed SecuritizationAsset Backed Securitization
Asset Backed Securitization
 
Bonds ppt
Bonds pptBonds ppt
Bonds ppt
 
Collateralized Debt Obligations
Collateralized Debt ObligationsCollateralized Debt Obligations
Collateralized Debt Obligations
 
Brokerage firms
Brokerage firmsBrokerage firms
Brokerage firms
 
Equity linked debentures
Equity linked debenturesEquity linked debentures
Equity linked debentures
 
Cdo Training Session (2)
Cdo Training Session (2)Cdo Training Session (2)
Cdo Training Session (2)
 
Cdo short explain
Cdo short explainCdo short explain
Cdo short explain
 
MBS CMO Presentation
MBS CMO PresentationMBS CMO Presentation
MBS CMO Presentation
 
Mortgage Backed Security
Mortgage Backed SecurityMortgage Backed Security
Mortgage Backed Security
 
[Goldman Sachs] A mortgage product primer
[Goldman Sachs] A mortgage product primer[Goldman Sachs] A mortgage product primer
[Goldman Sachs] A mortgage product primer
 
CDO Webinar: 2017 Trends in Data Strategy
CDO Webinar: 2017 Trends in Data StrategyCDO Webinar: 2017 Trends in Data Strategy
CDO Webinar: 2017 Trends in Data Strategy
 
Holding and subsidiary company.
Holding and subsidiary company.Holding and subsidiary company.
Holding and subsidiary company.
 
Introduction To Bonds
Introduction To BondsIntroduction To Bonds
Introduction To Bonds
 
Credit default swaps
Credit default swapsCredit default swaps
Credit default swaps
 
Bond valuation
Bond valuationBond valuation
Bond valuation
 
Broker
BrokerBroker
Broker
 
Valuation of Bonds and Shares
Valuation of Bonds and SharesValuation of Bonds and Shares
Valuation of Bonds and Shares
 
Bond Valuation
Bond ValuationBond Valuation
Bond Valuation
 
6. bond valuation
6. bond valuation6. bond valuation
6. bond valuation
 

Similar to CDO: Collateralized Debt Obligation

Ec4024 2009 Lecture 16 CDOs
Ec4024 2009 Lecture 16 CDOsEc4024 2009 Lecture 16 CDOs
Ec4024 2009 Lecture 16 CDOsStephen Kinsella
 
A tale of two hedge funds
A tale of two hedge fundsA tale of two hedge funds
A tale of two hedge fundsManju Natarajan
 
A tale of two hedge funds
A tale of two hedge fundsA tale of two hedge funds
A tale of two hedge fundsManju Natarajan
 
196.capital structure intro lecture 1
196.capital structure intro lecture 1196.capital structure intro lecture 1
196.capital structure intro lecture 1kitturashmikittu
 
MBIA's CDO Strategy
MBIA's CDO StrategyMBIA's CDO Strategy
MBIA's CDO Strategyfinancedude
 
Goldman Sachs’ Interview Tips New
Goldman Sachs’ Interview Tips NewGoldman Sachs’ Interview Tips New
Goldman Sachs’ Interview Tips NewAugustin Bangalore
 
X430 611-intro summary-infosession
X430 611-intro summary-infosessionX430 611-intro summary-infosession
X430 611-intro summary-infosessionBMLP
 
El rady-intro-summary
El rady-intro-summaryEl rady-intro-summary
El rady-intro-summaryBMLP
 
first american bank- credit default swaps
first american bank- credit default swapsfirst american bank- credit default swaps
first american bank- credit default swapsSatender Kumar
 
Credit default swap aapu
Credit default swap aapuCredit default swap aapu
Credit default swap aapuFahad Aapu
 
Financial Terms (A - Z)
Financial Terms (A - Z)Financial Terms (A - Z)
Financial Terms (A - Z)Romy Thakur
 
Financial jargon buster
Financial jargon busterFinancial jargon buster
Financial jargon busterRomy Thakur
 
Financial Management
Financial ManagementFinancial Management
Financial ManagementRESHMAPILLAIS
 
BFSM Unit - II.pptx
BFSM Unit - II.pptxBFSM Unit - II.pptx
BFSM Unit - II.pptxRaj3naveen6
 
Chapter 4 Financial Instruments (Lecture 2).pptx
Chapter 4 Financial Instruments (Lecture 2).pptxChapter 4 Financial Instruments (Lecture 2).pptx
Chapter 4 Financial Instruments (Lecture 2).pptxmhsmncumbatha
 
205 Financial Markets and Banking Operations UNIT3 C
205 Financial Markets and Banking Operations UNIT3 C205 Financial Markets and Banking Operations UNIT3 C
205 Financial Markets and Banking Operations UNIT3 CASM's IBMR- Chinchwad
 

Similar to CDO: Collateralized Debt Obligation (20)

Synthetic CDO
Synthetic CDOSynthetic CDO
Synthetic CDO
 
Ec4024 2009 Lecture 16 CDOs
Ec4024 2009 Lecture 16 CDOsEc4024 2009 Lecture 16 CDOs
Ec4024 2009 Lecture 16 CDOs
 
A tale of two hedge funds
A tale of two hedge fundsA tale of two hedge funds
A tale of two hedge funds
 
A tale of two hedge funds
A tale of two hedge fundsA tale of two hedge funds
A tale of two hedge funds
 
196.capital structure intro lecture 1
196.capital structure intro lecture 1196.capital structure intro lecture 1
196.capital structure intro lecture 1
 
MBIA's CDO Strategy
MBIA's CDO StrategyMBIA's CDO Strategy
MBIA's CDO Strategy
 
Goldman Sachs’ Interview Tips New
Goldman Sachs’ Interview Tips NewGoldman Sachs’ Interview Tips New
Goldman Sachs’ Interview Tips New
 
Goldman Sachs Imterview Tips
Goldman Sachs Imterview TipsGoldman Sachs Imterview Tips
Goldman Sachs Imterview Tips
 
X430 611-intro summary-infosession
X430 611-intro summary-infosessionX430 611-intro summary-infosession
X430 611-intro summary-infosession
 
El rady-intro-summary
El rady-intro-summaryEl rady-intro-summary
El rady-intro-summary
 
7_Credit Derivatives
7_Credit Derivatives7_Credit Derivatives
7_Credit Derivatives
 
first american bank- credit default swaps
first american bank- credit default swapsfirst american bank- credit default swaps
first american bank- credit default swaps
 
Credit default swap aapu
Credit default swap aapuCredit default swap aapu
Credit default swap aapu
 
Financial Terms (A - Z)
Financial Terms (A - Z)Financial Terms (A - Z)
Financial Terms (A - Z)
 
Financial jargon buster
Financial jargon busterFinancial jargon buster
Financial jargon buster
 
Financial Management
Financial ManagementFinancial Management
Financial Management
 
BFSM Unit - II.pptx
BFSM Unit - II.pptxBFSM Unit - II.pptx
BFSM Unit - II.pptx
 
CDS In India
CDS In IndiaCDS In India
CDS In India
 
Chapter 4 Financial Instruments (Lecture 2).pptx
Chapter 4 Financial Instruments (Lecture 2).pptxChapter 4 Financial Instruments (Lecture 2).pptx
Chapter 4 Financial Instruments (Lecture 2).pptx
 
205 Financial Markets and Banking Operations UNIT3 C
205 Financial Markets and Banking Operations UNIT3 C205 Financial Markets and Banking Operations UNIT3 C
205 Financial Markets and Banking Operations UNIT3 C
 

More from financedude

Bank Licensing Supplement Doc
Bank Licensing Supplement DocBank Licensing Supplement Doc
Bank Licensing Supplement Docfinancedude
 
Asset Securitization and Insolvency
Asset Securitization and InsolvencyAsset Securitization and Insolvency
Asset Securitization and Insolvencyfinancedude
 
Role of special purpose vehicles is ABS market
Role of special purpose vehicles is ABS marketRole of special purpose vehicles is ABS market
Role of special purpose vehicles is ABS marketfinancedude
 
Stamp Duty Land Tax
Stamp Duty Land TaxStamp Duty Land Tax
Stamp Duty Land Taxfinancedude
 
Italian-Thai development publc company limited
Italian-Thai development publc company limitedItalian-Thai development publc company limited
Italian-Thai development publc company limitedfinancedude
 
Special Purpose Vehicles and Insolvency Reforms in Philipeans
Special Purpose Vehicles and Insolvency Reforms in PhilipeansSpecial Purpose Vehicles and Insolvency Reforms in Philipeans
Special Purpose Vehicles and Insolvency Reforms in Philipeansfinancedude
 
Circular of the State Administration of Foreign Exchange
Circular of the State Administration of Foreign ExchangeCircular of the State Administration of Foreign Exchange
Circular of the State Administration of Foreign Exchangefinancedude
 
Bihar Special Purpose Vehicle
Bihar Special Purpose Vehicle Bihar Special Purpose Vehicle
Bihar Special Purpose Vehicle financedude
 
Luxor Group Special Purpose Vehicle
Luxor Group Special Purpose VehicleLuxor Group Special Purpose Vehicle
Luxor Group Special Purpose Vehiclefinancedude
 
Islamic Project Finance in Saudi Arabia
Islamic Project Finance in Saudi ArabiaIslamic Project Finance in Saudi Arabia
Islamic Project Finance in Saudi Arabiafinancedude
 
Electronic Documentation for SPV
Electronic Documentation for SPVElectronic Documentation for SPV
Electronic Documentation for SPVfinancedude
 
Securites and Exchange Commission of Pakistan
Securites and Exchange Commission of PakistanSecurites and Exchange Commission of Pakistan
Securites and Exchange Commission of Pakistanfinancedude
 
Chapter 7: Special Purpose Vehicle
Chapter 7: Special Purpose VehicleChapter 7: Special Purpose Vehicle
Chapter 7: Special Purpose Vehiclefinancedude
 
The Protected Cell Companies
The Protected Cell CompaniesThe Protected Cell Companies
The Protected Cell Companiesfinancedude
 
Securitization: Establishing a Special Purpose Vehicle in Guernsey
Securitization: Establishing a Special Purpose Vehicle in GuernseySecuritization: Establishing a Special Purpose Vehicle in Guernsey
Securitization: Establishing a Special Purpose Vehicle in Guernseyfinancedude
 
Implementing rules for SPVs
Implementing rules for SPVsImplementing rules for SPVs
Implementing rules for SPVsfinancedude
 
Final Written Notice
Final Written NoticeFinal Written Notice
Final Written Noticefinancedude
 
Structured Finance: Use and Abuse of Special-Purpose Entities
Structured Finance: Use and Abuse of Special-Purpose EntitiesStructured Finance: Use and Abuse of Special-Purpose Entities
Structured Finance: Use and Abuse of Special-Purpose Entitiesfinancedude
 
Detailed Product Development
Detailed Product DevelopmentDetailed Product Development
Detailed Product Developmentfinancedude
 

More from financedude (20)

Bank Licensing Supplement Doc
Bank Licensing Supplement DocBank Licensing Supplement Doc
Bank Licensing Supplement Doc
 
Asset Securitization and Insolvency
Asset Securitization and InsolvencyAsset Securitization and Insolvency
Asset Securitization and Insolvency
 
Role of special purpose vehicles is ABS market
Role of special purpose vehicles is ABS marketRole of special purpose vehicles is ABS market
Role of special purpose vehicles is ABS market
 
Stamp Duty Land Tax
Stamp Duty Land TaxStamp Duty Land Tax
Stamp Duty Land Tax
 
Italian-Thai development publc company limited
Italian-Thai development publc company limitedItalian-Thai development publc company limited
Italian-Thai development publc company limited
 
Securitization
SecuritizationSecuritization
Securitization
 
Special Purpose Vehicles and Insolvency Reforms in Philipeans
Special Purpose Vehicles and Insolvency Reforms in PhilipeansSpecial Purpose Vehicles and Insolvency Reforms in Philipeans
Special Purpose Vehicles and Insolvency Reforms in Philipeans
 
Circular of the State Administration of Foreign Exchange
Circular of the State Administration of Foreign ExchangeCircular of the State Administration of Foreign Exchange
Circular of the State Administration of Foreign Exchange
 
Bihar Special Purpose Vehicle
Bihar Special Purpose Vehicle Bihar Special Purpose Vehicle
Bihar Special Purpose Vehicle
 
Luxor Group Special Purpose Vehicle
Luxor Group Special Purpose VehicleLuxor Group Special Purpose Vehicle
Luxor Group Special Purpose Vehicle
 
Islamic Project Finance in Saudi Arabia
Islamic Project Finance in Saudi ArabiaIslamic Project Finance in Saudi Arabia
Islamic Project Finance in Saudi Arabia
 
Electronic Documentation for SPV
Electronic Documentation for SPVElectronic Documentation for SPV
Electronic Documentation for SPV
 
Securites and Exchange Commission of Pakistan
Securites and Exchange Commission of PakistanSecurites and Exchange Commission of Pakistan
Securites and Exchange Commission of Pakistan
 
Chapter 7: Special Purpose Vehicle
Chapter 7: Special Purpose VehicleChapter 7: Special Purpose Vehicle
Chapter 7: Special Purpose Vehicle
 
The Protected Cell Companies
The Protected Cell CompaniesThe Protected Cell Companies
The Protected Cell Companies
 
Securitization: Establishing a Special Purpose Vehicle in Guernsey
Securitization: Establishing a Special Purpose Vehicle in GuernseySecuritization: Establishing a Special Purpose Vehicle in Guernsey
Securitization: Establishing a Special Purpose Vehicle in Guernsey
 
Implementing rules for SPVs
Implementing rules for SPVsImplementing rules for SPVs
Implementing rules for SPVs
 
Final Written Notice
Final Written NoticeFinal Written Notice
Final Written Notice
 
Structured Finance: Use and Abuse of Special-Purpose Entities
Structured Finance: Use and Abuse of Special-Purpose EntitiesStructured Finance: Use and Abuse of Special-Purpose Entities
Structured Finance: Use and Abuse of Special-Purpose Entities
 
Detailed Product Development
Detailed Product DevelopmentDetailed Product Development
Detailed Product Development
 

Recently uploaded

2024 Q1 Crypto Industry Report | CoinGecko
2024 Q1 Crypto Industry Report | CoinGecko2024 Q1 Crypto Industry Report | CoinGecko
2024 Q1 Crypto Industry Report | CoinGeckoCoinGecko
 
Governor Olli Rehn: Dialling back monetary restraint
Governor Olli Rehn: Dialling back monetary restraintGovernor Olli Rehn: Dialling back monetary restraint
Governor Olli Rehn: Dialling back monetary restraintSuomen Pankki
 
NO1 WorldWide Love marriage specialist baba ji Amil Baba Kala ilam powerful v...
NO1 WorldWide Love marriage specialist baba ji Amil Baba Kala ilam powerful v...NO1 WorldWide Love marriage specialist baba ji Amil Baba Kala ilam powerful v...
NO1 WorldWide Love marriage specialist baba ji Amil Baba Kala ilam powerful v...Amil baba
 
GOODSANDSERVICETAX IN INDIAN ECONOMY IMPACT
GOODSANDSERVICETAX IN INDIAN ECONOMY IMPACTGOODSANDSERVICETAX IN INDIAN ECONOMY IMPACT
GOODSANDSERVICETAX IN INDIAN ECONOMY IMPACTharshitverma1762
 
BPPG response - Options for Defined Benefit schemes - 19Apr24.pdf
BPPG response - Options for Defined Benefit schemes - 19Apr24.pdfBPPG response - Options for Defined Benefit schemes - 19Apr24.pdf
BPPG response - Options for Defined Benefit schemes - 19Apr24.pdfHenry Tapper
 
Quantitative Analysis of Retail Sector Companies
Quantitative Analysis of Retail Sector CompaniesQuantitative Analysis of Retail Sector Companies
Quantitative Analysis of Retail Sector Companiesprashantbhati354
 
magnetic-pensions-a-new-blueprint-for-the-dc-landscape.pdf
magnetic-pensions-a-new-blueprint-for-the-dc-landscape.pdfmagnetic-pensions-a-new-blueprint-for-the-dc-landscape.pdf
magnetic-pensions-a-new-blueprint-for-the-dc-landscape.pdfHenry Tapper
 
原版1:1复刻堪萨斯大学毕业证KU毕业证留信学历认证
原版1:1复刻堪萨斯大学毕业证KU毕业证留信学历认证原版1:1复刻堪萨斯大学毕业证KU毕业证留信学历认证
原版1:1复刻堪萨斯大学毕业证KU毕业证留信学历认证jdkhjh
 
NO1 Certified Amil Baba In Lahore Kala Jadu In Lahore Best Amil In Lahore Ami...
NO1 Certified Amil Baba In Lahore Kala Jadu In Lahore Best Amil In Lahore Ami...NO1 Certified Amil Baba In Lahore Kala Jadu In Lahore Best Amil In Lahore Ami...
NO1 Certified Amil Baba In Lahore Kala Jadu In Lahore Best Amil In Lahore Ami...Amil baba
 
The Core Functions of the Bangko Sentral ng Pilipinas
The Core Functions of the Bangko Sentral ng PilipinasThe Core Functions of the Bangko Sentral ng Pilipinas
The Core Functions of the Bangko Sentral ng PilipinasCherylouCamus
 
government_intervention_in_business_ownership[1].pdf
government_intervention_in_business_ownership[1].pdfgovernment_intervention_in_business_ownership[1].pdf
government_intervention_in_business_ownership[1].pdfshaunmashale756
 
Current Economic situation of Pakistan .pptx
Current Economic situation of Pakistan .pptxCurrent Economic situation of Pakistan .pptx
Current Economic situation of Pakistan .pptxuzma244191
 
call girls in Nand Nagri (DELHI) 🔝 >༒9953330565🔝 genuine Escort Service 🔝✔️✔️
call girls in Nand Nagri (DELHI) 🔝 >༒9953330565🔝 genuine Escort Service 🔝✔️✔️call girls in Nand Nagri (DELHI) 🔝 >༒9953330565🔝 genuine Escort Service 🔝✔️✔️
call girls in Nand Nagri (DELHI) 🔝 >༒9953330565🔝 genuine Escort Service 🔝✔️✔️9953056974 Low Rate Call Girls In Saket, Delhi NCR
 
（办理原版一样）QUT毕业证昆士兰科技大学毕业证学位证留信学历认证成绩单补办
（办理原版一样）QUT毕业证昆士兰科技大学毕业证学位证留信学历认证成绩单补办（办理原版一样）QUT毕业证昆士兰科技大学毕业证学位证留信学历认证成绩单补办
（办理原版一样）QUT毕业证昆士兰科技大学毕业证学位证留信学历认证成绩单补办fqiuho152
 
Managing Finances in a Small Business (yes).pdf
Managing Finances in a Small Business (yes).pdfManaging Finances in a Small Business (yes).pdf
Managing Finances in a Small Business (yes).pdfmar yame
 
(办理学位证)加拿大萨省大学毕业证成绩单原版一比一
(办理学位证)加拿大萨省大学毕业证成绩单原版一比一(办理学位证)加拿大萨省大学毕业证成绩单原版一比一
(办理学位证)加拿大萨省大学毕业证成绩单原版一比一S SDS
 
fca-bsps-decision-letter-redacted (1).pdf
fca-bsps-decision-letter-redacted (1).pdffca-bsps-decision-letter-redacted (1).pdf
fca-bsps-decision-letter-redacted (1).pdfHenry Tapper
 
Classical Theory of Macroeconomics by Adam Smith
Classical Theory of Macroeconomics by Adam SmithClassical Theory of Macroeconomics by Adam Smith
Classical Theory of Macroeconomics by Adam SmithAdamYassin2
 
Stock Market Brief Deck for "this does not happen often".pdf
Stock Market Brief Deck for "this does not happen often".pdfStock Market Brief Deck for "this does not happen often".pdf
Stock Market Brief Deck for "this does not happen often".pdfMichael Silva
 
Bladex 1Q24 Earning Results Presentation
Bladex 1Q24 Earning Results PresentationBladex 1Q24 Earning Results Presentation
Bladex 1Q24 Earning Results PresentationBladex
 

Recently uploaded (20)

2024 Q1 Crypto Industry Report | CoinGecko
2024 Q1 Crypto Industry Report | CoinGecko2024 Q1 Crypto Industry Report | CoinGecko
2024 Q1 Crypto Industry Report | CoinGecko
 
Governor Olli Rehn: Dialling back monetary restraint
Governor Olli Rehn: Dialling back monetary restraintGovernor Olli Rehn: Dialling back monetary restraint
Governor Olli Rehn: Dialling back monetary restraint
 
NO1 WorldWide Love marriage specialist baba ji Amil Baba Kala ilam powerful v...
NO1 WorldWide Love marriage specialist baba ji Amil Baba Kala ilam powerful v...NO1 WorldWide Love marriage specialist baba ji Amil Baba Kala ilam powerful v...
NO1 WorldWide Love marriage specialist baba ji Amil Baba Kala ilam powerful v...
 
GOODSANDSERVICETAX IN INDIAN ECONOMY IMPACT
GOODSANDSERVICETAX IN INDIAN ECONOMY IMPACTGOODSANDSERVICETAX IN INDIAN ECONOMY IMPACT
GOODSANDSERVICETAX IN INDIAN ECONOMY IMPACT
 
BPPG response - Options for Defined Benefit schemes - 19Apr24.pdf
BPPG response - Options for Defined Benefit schemes - 19Apr24.pdfBPPG response - Options for Defined Benefit schemes - 19Apr24.pdf
BPPG response - Options for Defined Benefit schemes - 19Apr24.pdf
 
Quantitative Analysis of Retail Sector Companies
Quantitative Analysis of Retail Sector CompaniesQuantitative Analysis of Retail Sector Companies
Quantitative Analysis of Retail Sector Companies
 
magnetic-pensions-a-new-blueprint-for-the-dc-landscape.pdf
magnetic-pensions-a-new-blueprint-for-the-dc-landscape.pdfmagnetic-pensions-a-new-blueprint-for-the-dc-landscape.pdf
magnetic-pensions-a-new-blueprint-for-the-dc-landscape.pdf
 
原版1:1复刻堪萨斯大学毕业证KU毕业证留信学历认证
原版1:1复刻堪萨斯大学毕业证KU毕业证留信学历认证原版1:1复刻堪萨斯大学毕业证KU毕业证留信学历认证
原版1:1复刻堪萨斯大学毕业证KU毕业证留信学历认证
 
NO1 Certified Amil Baba In Lahore Kala Jadu In Lahore Best Amil In Lahore Ami...
NO1 Certified Amil Baba In Lahore Kala Jadu In Lahore Best Amil In Lahore Ami...NO1 Certified Amil Baba In Lahore Kala Jadu In Lahore Best Amil In Lahore Ami...
NO1 Certified Amil Baba In Lahore Kala Jadu In Lahore Best Amil In Lahore Ami...
 
The Core Functions of the Bangko Sentral ng Pilipinas
The Core Functions of the Bangko Sentral ng PilipinasThe Core Functions of the Bangko Sentral ng Pilipinas
The Core Functions of the Bangko Sentral ng Pilipinas
 
government_intervention_in_business_ownership[1].pdf
government_intervention_in_business_ownership[1].pdfgovernment_intervention_in_business_ownership[1].pdf
government_intervention_in_business_ownership[1].pdf
 
Current Economic situation of Pakistan .pptx
Current Economic situation of Pakistan .pptxCurrent Economic situation of Pakistan .pptx
Current Economic situation of Pakistan .pptx
 
call girls in Nand Nagri (DELHI) 🔝 >༒9953330565🔝 genuine Escort Service 🔝✔️✔️
call girls in Nand Nagri (DELHI) 🔝 >༒9953330565🔝 genuine Escort Service 🔝✔️✔️call girls in Nand Nagri (DELHI) 🔝 >༒9953330565🔝 genuine Escort Service 🔝✔️✔️
call girls in Nand Nagri (DELHI) 🔝 >༒9953330565🔝 genuine Escort Service 🔝✔️✔️
 
（办理原版一样）QUT毕业证昆士兰科技大学毕业证学位证留信学历认证成绩单补办
（办理原版一样）QUT毕业证昆士兰科技大学毕业证学位证留信学历认证成绩单补办（办理原版一样）QUT毕业证昆士兰科技大学毕业证学位证留信学历认证成绩单补办
（办理原版一样）QUT毕业证昆士兰科技大学毕业证学位证留信学历认证成绩单补办
 
Managing Finances in a Small Business (yes).pdf
Managing Finances in a Small Business (yes).pdfManaging Finances in a Small Business (yes).pdf
Managing Finances in a Small Business (yes).pdf
 
(办理学位证)加拿大萨省大学毕业证成绩单原版一比一
(办理学位证)加拿大萨省大学毕业证成绩单原版一比一(办理学位证)加拿大萨省大学毕业证成绩单原版一比一
(办理学位证)加拿大萨省大学毕业证成绩单原版一比一
 
fca-bsps-decision-letter-redacted (1).pdf
fca-bsps-decision-letter-redacted (1).pdffca-bsps-decision-letter-redacted (1).pdf
fca-bsps-decision-letter-redacted (1).pdf
 
Classical Theory of Macroeconomics by Adam Smith
Classical Theory of Macroeconomics by Adam SmithClassical Theory of Macroeconomics by Adam Smith
Classical Theory of Macroeconomics by Adam Smith
 
Stock Market Brief Deck for "this does not happen often".pdf
Stock Market Brief Deck for "this does not happen often".pdfStock Market Brief Deck for "this does not happen often".pdf
Stock Market Brief Deck for "this does not happen often".pdf
 
Bladex 1Q24 Earning Results Presentation
Bladex 1Q24 Earning Results PresentationBladex 1Q24 Earning Results Presentation
Bladex 1Q24 Earning Results Presentation
 

CDO: Collateralized Debt Obligation

  • 1. CDO: Collateralized Debt Obligation The New Choice in Global Reinsurance
  • 2.
  • 3.
  • 4. Growth in CDO Volume
  • 5.
  • 6. Generic CDO Structure CDO Special Purpose Vehicle (SPV) Subordinated Notes Equity Mezzanine Fixed or Floating Rate Notes Senior Fixed or Floating Rate Notes Diversified Pool of Underlying Assets (Collateral) Collateral Manager
  • 7. Example of CDO Tranching Equity 40M BB 5M BBB 47M AA 49M AAA 370M A High Yield CLO arranged by Bear Sterns. ( Eaton Vance )
  • 8. Example of CDO Tranching Equity 20M BB 5M BBB 15M A 10M AA 22.5M AAA 15M “ Super Senior” 912.5M CDO arranged by Bear Sterns where underlying collateral is investment grade. ( Meliorbanca Parthenon I ) Equity to AAA 87.5M BBB57% AA 4% A 39%
  • 9.
  • 10.
  • 11.
  • 12.
  • 13. CDO vs. Bond Spreads (to the Swap Curve)
  • 14.
  • 15.