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

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 [email protected] or view our subscription options here: http://subscriptions.risk.net/subscribe

You are currently unable to copy this content. Please contact [email protected] to find out more.

To continue reading...

You need to sign in to use this feature. If you don’t have a Risk.net account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here: