Just out of curiosity, I am wondering the benefits to a bank in creating a CDO structure vs buying a CDS. CFAI notes the bank benefits by eliminating credit ...

Jul 12, 2010 · A CDO (Collateralized Debt Obligation) is a SIV (Structured Investment Vehicle) and is a portfolio of ABS. CDOs are the financial products of ...

May 21, 2009 · "The key difference between a cash and synthetic CDO is: instead of selling the reference portfolio (loans), the originator (bank) purchases ...

... or you could use a single CDO. A CDS is totally different, its basically an insurance contract on a bond. The seller of a CDS collects a premium and agrees ...

Oct 31, 2012 · I don't understand how banks can use CDO to eliminate loan instruments from their balance sheet by using credit-default swap because proceeds ...

Say the Junior pay 10%, if the bond fails, then Junior trench got to pay the whole amount 100%, as compensation, they got a little CDS premium. in cash CDO, the ...

Hello, in a synthetic CDO, junior tranches have the following income: (1) sell credit protection to receive the premiums (2) receive income from the ...

A real CDO has debts (the “D” in “CDO”) that provide the cash flows: mortgages, car loans, student loans, credit card cebt, whatever.