Synthetic CDOs back as hedgies drive full cap sales

Synthetic CDOs
By Beth Shah, Will Caiger-Smith
08 Jan 2015

Synthetic collateralised debt obligations, one of the financial products synonymous with the global crisis, are set to accelerate their recent tentative comeback. Real money investors are joining hedge funds in chasing the controversial instruments’ double-digit yields, write Will Caiger-Smith and Beth Shah.

BNP Paribas, Citigroup and other investment banks are leading the charge in the product, moving risk off their balance sheets via the selling of whole portfolio capital structures rather than warehousing any risk.

“At one point if you walked into your boss’s office and said you ...

Please take a trial or subscribe to access this content.

Contact our subscriptions team to discuss your access:

Or sign up for a trial to gain full access to the entire site for a limited period.

Free Trial

Corporate access

To discuss GlobalCapital access for your entire department or company please contact our subscriptions sales team at: or find out more online here.