While the volumes of bespoke basket and collateralised debt obligation (CDO) transactions have ballooned in the last few years, dealers in Europe and the US have now begun to roll out new cash and derivatives investment products that provide exposure to generic credit portfolios. These are meant to offer efficient ways for fixed-income investors to diversify their portfolios – which is particularly important in the deteriorating credit cycle of the past 12 months.
CDOs and credit index-based
To continue reading...
Start a Risk.net Trial
Register for a Risk.net Business trial to access this article. Sign up today and get access to: