A synthetic CDO is a collateralized debt obligation that invests in credit default swaps or other non-cash assets to gain exposure to fixed income.

The first synthetic CDO deals were done by banks in 1997. 2. These “bank balance sheet” deals were motivated by either a desire to hedge credit risk, a ...

Following the financial crisis, the synthetic collateralized debt obligation (“CDO”)—a complex derivative that received little.

Structured finance instruments, such as CDOs, can be de- fined by three key characteristics: (i) pooling of assets; (ii) creating tranches of liabilities backed.

A synthetic CDO is a variation of a CDO (collateralized debt obligation) that generally uses credit default swaps and other derivatives to obtain its ...

In this article, I argue that focusing primarily on the misconduct by investment banks, or on the harm suffered by investors, has caused regulators to miss the ...

A collateralized debt obligation (CDO) is a complex financial product backed by a pool of loans and other assets and sold to institutional investors.

Synthetic CDOs were complex paper transactions involving credit default swaps. Unlike the traditional cash CDO, synthetic CDOs contained no actual tranches of.