A synthetic CDO is a
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Synthetic CDO — A form of collateralized debt obligation (CDO) that invests in credit default swaps (CDSs) or other non cash assets to gain exposure to a portfolio of fixed income assets. Synthetic CDOs are typically divided into credit tranches based on the… … Investment dictionary
synthetic CDO — A CDO that uses credit default swaps rather than actual corporate obligations to create a pool of credit exposure. See collateralized debt obligation ( CDO) … Financial and business terms
CDO — collateralized debt obligation (CDO) (1) A multi tranche security with credit risk exposure to corporations. A securitization of corporate obligations. CDOs can be securitizations or re securitizations of commercial loans, corporate bonds, other… … Financial and business terms
Broad Index Synthetic Trust Offering - BISTRO — Proprietary name used by J.P. Morgan for creating collateralized debt obligations (CDOs) from credit derivatives. The Broad Index Secured Trust Offering (BISTRO) was introduced in 1997 and was the predecessor to the synthetic collateralized debt… … Investment dictionary
Single Tranche CDO — is a natural extension of full capital structure Synthetic CDO deals. These are bespoke transactions where the bank and the investor work closely to achieve a specific target. In a bespoke transaction, the investor has 100% say on the rating of… … Wikipedia
Collateralized debt obligation — Financial markets Public market Exchange Securities Bond market Fixed income Corporate bond Government bond Municipal bond … Wikipedia
Credit derivative — In finance, a credit derivative is a securitized derivative whose value is derived from the credit risk on an underlying bond, loan or any other financial asset. In this way, the credit risk is on an entity other than the counterparties to the… … Wikipedia
Late-2000s financial crisis — The TED spread (in red) increased significantly during the financial crisis, reflecting an increase in perceived credit risk … Wikipedia
Magnetar Capital — is a hedge fund based in Evanston, Illinois. Among its many activities, the firm was actively involved in the collateralized debt obligation (CDO) market during the 2006–2007 period. In some articles critical of Magnetar Capital, the firm s… … Wikipedia
Credit default swap — If the reference bond performs without default, the protection buyer pays quarterly payments to the seller until maturity … Wikipedia
