Cash vs synthetic CDOs

3. Cash vs Synthetic


The distinction between cash and synthetic instruments is that while in a cash CDO assets are physically removed from a bank's balance sheet, in a synthetic transaction the risk is transferred to third-party investors, with the originating bank retaining the assets. The synthetic template has been a very appealing option for banks that are attracted by the regulatory capital benefits of removing loan risk from their balance sheets while retaining ownership, which may be a requirement for a

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 or view our subscription options here:

You are currently unable to copy this content. Please contact to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to View our subscription options

You need to sign in to use this feature. If you don’t have a 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