CDO Defaults Driven By Ratings, Not Missed Payments

23 May 2008

Very few if any of the nearly 200 collateralized debt obligations in default have done so because of missed payments.

Very few if any of the nearly 200 collateralized debt obligations in default have done so because of missed payments. At least 180 CDOs totaling about USD200 billion have defaulted due to ratings downgrades as a result of failing overcollateralization tests, according to various CDO officials. "Even though ...

Already a subscriber?

Continue reading this article

Try full access to GlobalCapital

Free trial