Synthetic CDO issuance surge forecast

A further surge in static and managed corporate synthetic collateralised debt obligation (CDO) issuance is expected this year, according to new research by Bank of America. The US bank made the prediction using its proprietary ‘return-on-equity barometer’ measure – an index of both volumes and the attractiveness of buying CDO equity in the new issues market. It estimated that the internal rate of return on synthetic investment-grade CDOs has reached 45.9% and 34.6%, assuming a 0.25% and 1%

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: