U.S. CDO Ruling To Send Shockwaves Through Structured Products (update)

29 Jan 2010

Monday’s ruling by a U.S. court to apply U.S. bankruptcy law to the unwinding of Lehman Brothers’ Dante collateralized debt obligation could trigger restructurings and downgrades in a raft of structured products.

-- Daniel O’Leary

Monday’s ruling by a U.S. court to apply U.S. bankruptcy law to the unwinding of Lehman Brothers’ Dante collateralized debt obligation could trigger restructurings and downgrades in a raft of structured products. At issue is the CDO’s flip clause, which put a defaulted counterparty before the ...

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