De-leveraging credit risk



For the first few months of this year, when credit spreads were locked at historically tight levels, it seemed the only way for collateralised debt obligation (CDO) investors to make the sort of money they were making just a few years ago was to take additional leverage. In the search for additional yield, investors have pumped money into CDO-squared transactions, while dealers have even looked at CDO-cubed to squeeze more juice out of the underlying portfolios.

However, the downgrade of Gen

To continue reading...

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 indvidual account here: