Reinventing the market

Reports that the cashflow collateralised debt obligation is dead are premature. After a quiet spring, several transactions have come to market in the summer and early autumn, with unique structures designed to appeal to a more skittish investor base

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Cashflow collateralised debt obligations (CDOs), especially those backed by high-yield bonds, have taken a big hit over the past year from the corporate credit crunch. Synthetic CDO deals now dominate the market’s attention. But the cashflow CDO has been steadily reinventing itself in terms of both collateral and structure, adapting to market and investor demand. And participants claim high-yield bond structures are waiting in the wings for a comeback.

The taint of high-yield collateralised

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Credit risk & modelling – Special report 2021

This Risk special report provides an insight on the challenges facing banks in measuring and mitigating credit risk in the current environment, and the strategies they are deploying to adapt to a more stringent regulatory approach.

The wild world of credit models

The Covid-19 pandemic has induced a kind of schizophrenia in loan-loss models. When the pandemic hit, banks overprovisioned for credit losses on the assumption that the economy would head south. But when government stimulus packages put wads of cash in…

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