CDO-Squared

In the article CDO-Squared we will explore different aspects related to this topic, from its origins to its relevance today. We will analyze how CDO-Squared has impacted society and how it has evolved over time. Additionally, we will examine the different perspectives and opinions that exist around CDO-Squared, providing a complete and balanced overview of this topic. Throughout the article, we will delve into specific aspects that will help understand the importance and impact of CDO-Squared in various areas. Through a critical and reflective approach, we aim to offer our readers a complete and enriching vision of CDO-Squared.

Financial product backed by tranches from other CDOs

CDO-Squared is a collateralized debt obligation backed primarily by the tranches issued by other CDOs. These instruments became popular before the financial crisis of 2007–08. There were 36 CDO-Squared deals made in 2005, 48 in 2006 and 41 in 2007. Merrill Lynch was a big producer, creating and selling 11 of them.

The collapse of the market for collateralized debt obligations and CDO-Squared contributed to the 2008 subprime mortgage crisis. Goldman Sachs appears to be the last bank to hold CDOs-Squared, holding $50 million (~$59.8 million in 2023) in June 2018.

2004 Abacus 2004-2 Abacus 2004-3 ACA 2004-1 Cascade Funding I Crystal Cove Davis Square Funding III Dunhill E-Trade III Glacier Funding I Glacier Funding II Independence V Jupiter High Grade Lakeside II Sierra Madre Funding

2005 Abacus 2005-1 Abacus 2005-2 Abacus 2005-3 Abacus 2005-5 Adirondack 2005-1 Altius I Funding Broderick 1 Camber 3 Plc Class V Funding Coolidge Funding Davis Square Funding IV E-Trade IV Fort Sheridan Glacier Funding III G Street Finance Huntington Independence VI Jupiter High Grade I Jupiter High Grade II Jupiter High Grade III Khaleej II Kleros Preferred Funding Lenox Lexington Capital Funding

2006 Auriga Bernoulli High Grade I Broadwick Funding Broderick 2 Class V Funding II Commodore V Davis Square Funding VI Fortius II Funding GSC 2006-2m Hout Bay 2006-1 Hudson High Grade Funding 2006-1 Hudson Mezzanine Funding 2006-1 Independence VII Ipswich Street Jupiter High Grade IV Kleros Preferred Funding II Kleros Preferred Funding III Kleros Real Estate I Kleros Real Estate II Kleros Real Estate III Libertas Preferred Funding I Octans I Pampelonne I West Coast Funding I

2007 Abacus 2007-AC1 Glacier Funding V Newbury Street Norma I Point Pleasant 2007-1 Timberwolf 1 Vertical 2007-1 Volans

References

1. ^ "CDOs-Squared Demystified" (PDF). Nomura Fixed Income Research. 2005. Retrieved 2018-10-04.
2. ^ The Financial Crisis Inquiry Report, 2011, p.203
3. ^ "Collateralized Debt Obligation Squared - CDO-Squared". Investopedia. Retrieved 2018-10-04.
4. ^ Woodall, Louie (2018-10-03). "Goldman Sachs is last major bank holding CDO squared". Risk Quantum.
5. ^ "CDO Library : Financial Crisis Inquiry Commission".

Sources

• Adams, Andrew; Bhatt, Rajiv; Clunie, James (1 June 2009). "The Risks in CDO-Squared Structures" (PDF). Multinational Finance Journal. 13 (1/2): 55–74. doi:10.17578/13-1/2-3. ISSN 1096-1879.

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