The long and short of CDOs

product launch

pg43-trio-gif

A collateralized debt obligation (CDO) based on out-of-the-money barrier options was closed last month that may reshape the market for CDOs based on relative-value opportunities between equity and credit. The reason: its financial engineers have converted equity into triple-A rated credit that will pay investors 66 basis points over Euribor at a time when other dealers have struggled to achieve single-A rated tranches.

The structurers of the deal, Credit Suisse First Boston (CSFB), are not the fi

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 indvidual account here: