The Bond Market Association finalized a standardized format for versions of monthly electronic trustee reports used in collateralized debt obligations. It is recommending that CDO trustees implement this format and begin producing compliant data files by the end of next quarter.
The new format is designed to improve efficiency and transparency by providing a standardized, machine-readable data file so market participants can process data provided in reports on CDO transactions quicker. A user will now be able to process and manipulate data files from any participating trustee in one process. The new format will not allow different trustees on the same structure to put out different information, for example. The standardized data file includes specific fields of information for a CDO including basic information such as the name of the collateral manager and its Bloomberg ticket. It also includes more specific information such as the credit watch codes from the ratings agencies.
The format was previously released in draft form in October 2005 for industry comment. It is now available on the BMA's Web site. Robbin Conner, v.p. and assistant general counsel at the BMA, was traveling and could not be reached by press time.