collateralised debt obligation
- collateralised debt obligation
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International
Structured finance instruments (being debt securities (debt security) in the form of bonds or notes) which are divided into several classes or "tranches" of varying size, credit rating and priority ranking, issued by a special purpose vehicle (SPV) and backed, that is funded by and secured over, a diverse portfolio of financial assets (typically consisting of commercial loans, corporate bonds and/or structured finance securities (including asset-backed securities, mortgage-backed securities and CDO securities issued by other SPVs)) acquired by the SPV. The SPV will purchase the assets in the open market or directly from the balance sheet of the collateral manager or arranging bank. It will fund this purchase with the proceeds arising from the issue of its CDO securities.
A CDO transaction is essentially a form of securitisation of certain financial assets.
USA
A type of debt security backed by a group (or pool) of fixed income assets (ranging from mortgage-backed securities to corporate bonds sold in the market). To maximize the range of investors to whom they can be sold, the securities are divided into different classes. These typically consist of senior and subordinated tranches (often including an equity tranche at the most junior level) that have differing priorities (priority) regarding payment of principal and interest, differing maturities and differing interest rates. The tranches are generally rated by a credit rating agency. The more senior tranches have the right to priority of payment over more junior tranches, but the more junior tranches carry a higher rate of interest, as they are riskier assets.
Glossary
Practical Law Dictionary. Glossary of UK, US and international legal terms.
www.practicallaw.com.
2010.
Look at other dictionaries:
Collateralised Debt Obligation — Un CDO (pour collateralized debt obligation, en français, « obligation adossée à des actifs ») est une structure de titrisation d actifs financiers de nature diverse. Sommaire 1 Son fonctionnement 2 Les risques 3 Notes et références … Wikipédia en Français
Collateralised debt obligation — Un CDO (pour collateralized debt obligation, en français : « obligation adossée à des actifs », est une structure de titrisation d actifs financiers de nature diverse. Il s agit de titres représentatifs de portefeuilles de créances … Wikipédia en Français
Collateralised Debt Obligation — Collateralized Debt Obligation (CDO) ist ein Überbegriff für Finanzinstrumente, die zu der Gruppe der forderungsbesicherten Wertpapiere (Asset Backed Securities) und strukturierten Kreditprodukte gehören. CDOs bestehen aus einem Portfolio aus… … Deutsch Wikipedia
collateralised debt obligations — (CDO) International Structured finance instruments (being debt securities (debt security) in the form of bonds or notes) which are divided into several classes or tranches of varying size, credit rating and priority ranking, issued by a special… … Law dictionary
collateralised loan obligation — collateralised loan obligations (CLO) International Also referred to as CLO. Structured finance instruments (being debt securities (debt security) in the form of bonds or notes) which are backed, that is funded by and secured over, a portfolio of … Law dictionary
collateralised bond obligation — collateralised bond obligations (CBO) International Structured finance instruments (being debt securities (debt security) in the form of bonds or notes) which are backed, that is funded by and secured over, a portfolio of bonds. See also co … Law dictionary
Collateralized Debt Obligation — Collateralised debt obligation Un CDO (pour collateralized debt obligation, en français, « obligation adossée à des actifs ») est une structure de titrisation d actifs financiers de nature diverse. Sommaire 1 Son fonctionnement 2 Les… … Wikipédia en Français
Collateralised Loan Obligation — In diesem Artikel oder Abschnitt fehlen folgende wichtige Informationen: Entwicklungsgeschichte Du kannst Wikipedia helfen, indem du sie recherchierst und einfügst. Eine Collateralized Loan Obligation i … Deutsch Wikipedia
collateralized debt obligation — collateralised debt obligations (CDO) International Structured finance instruments (being debt securities (debt security) in the form of bonds or notes) which are divided into several classes or tranches of varying size, credit rating and… … Law dictionary
Collateralized debt obligation — Ein forderungsbesichertes Wertpapier (englisch: „asset backed security“, kurz „ABS“) ist ein verzinsliches Wertpapier, welches Zahlungsansprüche gegen eine Zweckgesellschaft (englisch: „Special Purpose Vehicle“, kurz „SPV“) zum Gegenstand hat und … Deutsch Wikipedia
