Leverage lift-off for new CDOs

After the correlation crisis left mezzanine collateralised debt obligations at the bottom of investors' wish-lists, structurers devised an innovative new CDO which offers leveraged exposure to super-senior risk. The product, known as an LSS CDO, has quickly become a favourite among investors. But are they aware of the risks? Laurence Neville reports

pg48-katrien-gif

The synthetic collateralised debt obligation (CDO) market has shown itself to be both resilient and creative in the months following the correlation crisis of April and May. As mezzanine CDOs became increasingly less attractive following the repricing of the market, structurers went back to the drawing board and emerged with a number of new products. Chief among these in terms of volume of issuance and interest are leveraged super-senior CDOs.

Popular with a wide range of investors, leveraged

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 copy this content. Please contact info@risk.net to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to Risk.net? View our subscription options

Most read articles loading...

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