Collateralized Debt Obligations: Structures and Analysis (Frank J. Fabozzi Series) - Hardcover

A practical guide to the features and investment characteristics of CDOs In the bond area, collateralized debt obligations, which include collateralized bond obligations and collateralized loan obligations, are the fastest--growing sector. Collateralized Debt Obligations: Structures and Analysis describes the various products in this area--cash flow CDOs, market value CDOs, synthetic CDOs, etc.--and explains how to evaluate them. With this book as their guide, investment managers and institutional investors alike will learn how to analyze the risks associated with CDOs, create a portfolio of CDO products, and assess trading opportunities in the secondary market.

The market for collateralized debt obligations?including both collateralized bond obligations (CBOs) and collateralized loan obligations (CLOs)?is the fastest growing sector of the asset-backed securities market. In 1995, a major bond rating agency rated only six deals with a par value of $1 billion. By 2001, that same rating agency rated 277 deals with a par value of $101 billion.

To help you keep up with the expanding CDO market and its various instruments, Laurie Goodman and Frank Fabozzi have collaborated to bring you Collateralized Debt Obligations: Structures and Analysis. Written in a clear and accessible style, this book is a valuable guide that provides you with critical insights into many areas of this important market sector.

Collateralized Debt Obligations defines and describes many of the current products in the CDO arena?cash flow CDOs, market value CDOs, synthetic CDOs?and explains how to evaluate each of them. Whether you?re an investment manager or institutional investor, with this book as your guide you?ll learn how to analyze the risks associated with different types of CDOs, create and manage a portfolio of CDOs, and assess trading opportunities in the secondary market.

Filled with in-depth insights gleaned from years of investment and credit experience, Collateralized Debt Obligations examines a wide range of CDO topics that cannot be found in any other text.

Topics covered include:

• Cash flow versus market value structures
• Synthetic structures
• Structures backed by speculative and investment grade corporate bonds and loans, emerging market bonds, and structured finance products
• The appropriate default rate for evaluating high yield-backed structures
• Mezzanine and equity tranches
• PIK tranches
• Structural considerations and the CDO arbitrage

With the number of CDOs backed by structured financial products on the rise, there is even a chapter that covers the ABS, RMBS, CMBS, and REIT products typically used as collateral.

The collateralized debt obligations market is an exciting and profitable place for those who understand its complexities. With Collateralized Debt Obligations as your guide, you can begin to understand and take advantage of this ever-evolving market and its products.