CDO-Squared - Wikipedia

Jump to content

Contents

move to sidebar hide

• (Top)
• 1 2004
• 2 2005
• 3 2006
• 4 2007
• 5 References
• 6 Sources

• Article
• Talk

English

• Read
• Edit
• View history

Tools Tools move to sidebar hide Actions

• Read
• Edit
• View history

General

• What links here
• Related changes
• Upload file
• Permanent link
• Page information
• Cite this page
• Get shortened URL
• Download QR code

Print/export

• Download as PDF
• Printable version

In other projects

• Wikidata item

Appearance move to sidebar hide From Wikipedia, the free encyclopedia Financial product backed by tranches from other CDOs

CDO-Squared is an investment in the form of a special-purpose entity (SPE) with securitization payments backed by collateralized debt obligation tranches. A collateralized debt obligation is a product structured by a bank in which an investor buys a share of a pool of bonds, loans, asset-backed securities, and other credit instruments. Payments resulting from those bonds, loans, asset-backed securities, and other instruments are then passed on to the holders of the shares of the collateralized debt obligation. It is a way to invest in multiple credit instruments and diversify risk.[1][2] These instruments became popular before the 2008 financial crisis. There were 36 CDO-Squared deals made in 2005, 48 in 2006 and 41 in 2007. Merrill Lynch was a big producer, creating and selling 11 of them.[3]

The collapse of the market for collateralized debt obligations and CDO-Squared contributed to the 2008 subprime mortgage crisis.[2] Goldman Sachs appears to be the last bank to hold CDOs-Squared, holding $50 million (~$61.3 million in 2024) in June 2018.[4]

2004 [edit] Abacus 2004-2 Abacus 2004-3 ACA 2004-1 Cascade Funding I Crystal Cove Davis Square Funding III Dunhill E-Trade III Glacier Funding I Glacier Funding II Independence V Jupiter High Grade Lakeside II Sierra Madre Funding

2005 [edit] Abacus 2005-1 Abacus 2005-2 Abacus 2005-3 Abacus 2005-5 Adirondack 2005-1 Altius I Funding Broderick 1 Camber 3 Plc Class V Funding Coolidge Funding Davis Square Funding IV E-Trade IV Fort Sheridan Glacier Funding III G Street Finance Huntington Independence VI Jupiter High Grade I Jupiter High Grade II Jupiter High Grade III Khaleej II Kleros Preferred Funding Lenox Lexington Capital Funding

2006 [edit] Auriga Bernoulli High Grade I Broadwick Funding Broderick 2 Class V Funding II Commodore V Davis Square Funding VI Fortius II Funding GSC 2006-2m Hout Bay 2006-1 Hudson High Grade Funding 2006-1 Hudson Mezzanine Funding 2006-1 Independence VII Ipswich Street Jupiter High Grade IV Kleros Preferred Funding II Kleros Preferred Funding III Kleros Real Estate I Kleros Real Estate II Kleros Real Estate III Libertas Preferred Funding I Octans I Pampelonne I West Coast Funding I

2007 [edit] Abacus 2007-AC1 Glacier Funding V Newbury Street Norma I Point Pleasant 2007-1 Timberwolf 1 Vertical 2007-1 Volans

[5]

References

[edit]

1. ^ "CDOs-Squared Demystified" (PDF). Nomura Fixed Income Research. 2005. Retrieved 2018-10-04.
2. ^ a b "Collateralized Debt Obligation (CDO-Squared) Overview". Investopedia. Retrieved 2024-11-28.
3. ^ The Financial Crisis Inquiry Report, 2011, p.203
4. ^ Woodall, Louie (2018-10-03). "Goldman Sachs is last major bank holding CDO squared". Risk Quantum.
5. ^ "CDO Library : Financial Crisis Inquiry Commission".

Sources

[edit]

• Adams, Andrew; Bhatt, Rajiv; Clunie, James (1 June 2009). "The Risks in CDO-Squared Structures" (PDF). Multinational Finance Journal. 13 (1/2): 55–74. doi:10.17578/13-1/2-3. ISSN 1096-1879.

This finance-related article is a stub. You can help Wikipedia by expanding it.

• v
• t
• e

Retrieved from "https://en.wikipedia.org/w/index.php?title=CDO-Squared&oldid=1288711420" Categories:

• Derivatives (finance)
• United States housing bubble
• Finance stubs

Hidden categories:

• Articles with short description
• Short description matches Wikidata
• All stub articles

Search Search Toggle the table of contents CDO-Squared Add languages Add topic