The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site.

All material subject to strictly enforced copyright laws. © 2021 Euromoney, a part of the Euromoney Institutional Investor PLC.

Bankers fight for CDO supremacy

The fastest-growing part of the credit markets is not bonds, loans or commercial paper. It is a curious hybrid of credit derivatives and securitization. The market in synthetic CDOs is growing at an explosive rate and making investment banks plenty of money in the process. But just as the fight for leadership is getting most intense, the most lucrative days of this market may be behind it.

       
David Peacock

The market for synthetic collateralized debt obligations (CDOs), which did not exist five years ago, is now fast growing and lucrative. It is also, however, one of the most opaque and unquantified areas of the financial markets. Even two years ago, no more than a handful of banks could truly claim to understand the basic structure of the synthetic CDO.


Now that secret recipe has become public knowledge, with a large array of institutions doing synthetic CDOs of one kind or another. And growing numbers of these deals are being done publicly, or at least semi-publicly. That has allowed researchers to put better numbers on the market and start to get a sense of which banks have the largest market share.


The tables shown here, compiled by research firm Creditflux, are the first full-year league tables for the synthetic CDO market.



You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.

SUBSCRIBE ONLINE TODAY

Unlimited access to Euromoney.com and Asiamoney.com

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually

FREE 7 DAY TRIAL

Unlimited access to Euromoney.com and Asiamoney.com, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors

LOGIN NOW

Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree