$3 billion of CPDOs at risk of unwinding

Barclays Capital estimates $3 billion of constant proportion debt obligations are at imminent risk of being unwound. The CPDOs in question were issued between July and September, and have exposures to 45-50 financial names. Barclays Capital says these CPDOs have suffered significant mark-to-market losses and could unwind if spreads widen more than five basis points. This could have a knock-on effect, with spreads widening on the underlying 10-year credit default swap contracts, according to a re

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: