All material subject to strictly enforced copyright laws. © 2022 Euromoney Institutional Investor PLC group

CDO Structures Lose Coverage, Triggers

U.S. asset-backed securities collateralized debt obligations have undergone a sea change over the past few months and now are being structured without interest coverage or over-collateralization triggers, which cut off payments to equity tranche investors if the portfolio experiences losses.

Unlock this article.

The content you are trying to view is exclusive to our subscribers.

To unlock this article:

Take a Free Trial or Login
We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree