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A synthetic CDO is a variation of a CDO (collateralized debt obligation) that generally uses credit default swaps and other derivatives to obtain its investment goals. [1] As such, it is a complex derivative financial security sometimes described as a bet on the performance of other mortgage (or other) products, rather than a real mortgage security. [2]
A collateralized debt obligation (CDO) is a type of structured asset-backed security (ABS). [1] Originally developed as instruments for the corporate debt markets, after 2002 CDOs became vehicles for refinancing mortgage-backed securities (MBS).
This synthetic securitization process has become increasingly popular over the last decade, with the simple versions of these structures being known as synthetic collateralized debt obligations (CDOs), credit-linked notes or single-tranche CDOs. In funded credit derivatives, transactions are often rated by rating agencies, which allows ...
The Securities and Exchanges Commission's allegations about Goldman Sachs (GS) fraudulently selling a synthetic collateralized debt obligation called Abacus raise several fundamental questions ...
Credit default swaps are also used to structure synthetic collateralized debt obligations (CDOs). Instead of owning bonds or loans, a synthetic CDO gets credit exposure to a portfolio of fixed income assets without owning those assets through the use of CDS. [9] CDOs are viewed as complex and opaque financial instruments.
The Securities and Exchange Commission today charged Goldman Sachs (GS) with defrauding investors by misstating and omitting key facts about securities tied to subprime mortgages as the housing ...
Single-tranche CDO or bespoke CDO is an extension of full capital structure synthetic CDO deals, which are a form of collateralized debt obligation.These are bespoke transactions where the bank and the investor work closely to achieve a specific target.
NEW CASTLE, Delaware, Oct. 11, 2024 (GLOBE NEWSWIRE) -- Allied Market Research published a report, titled, "Collateralized Debt Obligation Market by Type (Collateralized loan obligations (CLOs), Collateralized bond obligations (CBOs), Collateralized synthetic obligations (CSOs), Structured finance CDOs (SFCDOs)), and Application (Asset Management Company, Fund Company and Others): Global ...