CDOs of CDOs: art eating itself?

By Darren Smith

credit-derivatives-book
This article was first published as a chapter in Credit Derivatives on September 1, 2003, by Risk Books.

DEVELOPMENT OF THE MARKET

The collateralised debt obligation (CDO) market has grown from virtually nothing in the early 1990s to a market growing at an annual rate of over US$150 billion rated notes per annum. The CDO or collateralised bond obligation (CBO) market, as it was initially, grew out of the junk-bond market meltdown of the early 1990s. After that market recovered, there was no n