Latest News:
news, comment, analysis and data on the global business of credit trading and investing
Balance sheet CDO
Often referred to as a balance sheet CLO, a CDO in which an issuing bank sells exposures that are already on its balance sheet. This is in contrast to arbitrage CDOs, in which the arranger sets out to acquire exposures to take advantage of the difference between spreads on the underlying portfolio and spreads on the CDO liabilities. The first synthetic CDOs, issued in the late 1990s, were balance sheet transactions, designed to reduce banks' regulatory capital charge on loans on their books.
Related stories
- SEC probes second synthetic ABS CDO, says FT 1 year ago
- Linklaters article discusses New York Insurance Department threat... 3 years ago
- Moody's shifts to negative outlook on most CDO classes 3 years ago
- Morgan Stanley sheds light on CDO exposure 4 years ago
- Barclays readies jumbo balance sheet synthetic 5 years ago
- Australian buyers turn to ABS CDOs 8 years ago
- India set for CDO growth 8 years ago
- New losses for insurers 9 years ago
- Restructuring breakthrough prompts Japanese deal surge 9 years ago
