A cracking time: Banks turn to CDO unwinds
A cracking time
Once upon a time, collateralised debt obligations (CDOs) were seen as a kind of financial alchemy – converting relatively low-rated mortgage-backed securities into AAA-rated bonds that were popular with investors around the world. When the crisis hit in 2007, the chemistry fizzled out. CDOs quickly turned from gold back into lead, and banks have been trying to get them off their balance sheets ever since.
But the stars are now aligning to provide a way out. With interest rates still at record
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 info@risk.net or view our subscription options here: http://subscriptions.risk.net/subscribe
You are currently unable to print this content. Please contact info@risk.net to find out more.
You are currently unable to copy this content. Please contact info@risk.net to find out more.
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. Printing this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/
If you would like to purchase additional rights please email info@risk.net
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. Copying this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/
If you would like to purchase additional rights please email info@risk.net
More on Securitisation
Global banks look for profits in China ABS market
Regulatory change provides opportunity for international firms' structuring skills
Credit fears hold back US solar securitisation deals
SolarCity deals show potential and pitfalls of new asset class
Collateral damage: Capital proposals threaten Europe's ABS market
Insecuritisation
Securitisation touted as answer to '€4 trillion' funding gap
Securitisation industry group claims Europe faces big financing shortfall – and pushes securitisation as the answer
SG plans to securitise €1.9 billion of derivatives exposure
Deal is said to pay a coupon of 11% for first-loss protection – which some investors say is too low
"Deceptive and negligent": How the first CPDO got its AAA rating
An extraordinary Australian court judgement shines a light on the errors and deceit that led to the granting of an AAA rating to ABN Amro’s Surf constant proportion debt obligation in 2006. Lukas Becker reports
Dutch counsel confident of success as S&P faces new CPDO case
The fine handed out by an Australian court last year to ABN Amro and Standard & Poor’s was a rare success for post-crisis litigants in structured credit cases. The victors are hoping to repeat the trick in Europe – but what are their chances? Lukas…