Trust-preferred CDOs spark concern
New angles
Research by Fitch Ratings suggests that the investment performance of trust-preferred collateralised debt obligations (CDOs) in the US has remained strong, despite growing concern among investors about concentration risk.
The underlyings in these deals are trust-preferred securities, which have both a debt and equity component. They are taxed like debt obligations but are classified as equities in a company’s accounting statement and are treated as regulatory capital. Banks and insurers issue
Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.
To access these options, along with all other subscription benefits, please contact info@risk.net or view our subscription options here: http://subscriptions.risk.net/subscribe
You are currently unable to print this content. Please contact info@risk.net to find out more.
You are currently unable to copy this content. Please contact info@risk.net to find out more.
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. Printing this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/
If you would like to purchase additional rights please email info@risk.net
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. Copying this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/
If you would like to purchase additional rights please email info@risk.net
More on Credit derivatives
Regulation
FCA proposes using CME’s term SOFR for synthetic US Libor
IBA agrees to use rival’s ARRC-endorsed benchmark to avoid bifurcating the market
Receive this by email
Most read on Risk.net
- Podcast: Piterbarg and Antonov on alternatives to neural networks
- FCA proposes using CME’s term SOFR for synthetic US Libor
- Climate risk managers debate role of client transition plans
- Equities clearing and CCP resilience: protecting post-trade from geopolitical turmoil
- Why the search for cheapest-to-deliver bonds just got harder