Collateralized Debt Obligations

<body stylesrc="../_private/template_title.htm" topmargin="10" leftmargin="10" bgcolor="#FFFFFF" link="#333366" vlink="#000000" alink="#000000"> <div align="left"> <table border="0" cellspacing="0" style="border-collapse: collapse" bordercolor="#111111" width="100%" cellpadding="0" id="table2"> <tr> <td width="780"> <div align="center"> <table border="0" cellpadding="5" cellspacing="0" height="206" style="border-collapse: collapse" bordercolor="#111111" width="100%" id="table3"> <tr> <td align="right" height="198" width="1%"> <p align="left"> <strong style="font-weight: 400"> <img border="0" src="../images/book_fabozzi_and_goodman_2002.gif" width="132" height="200"></strong></td> <td valign="top" align="left" height="198"> <table border="0" cellspacing="1" style="border-collapse: collapse" bordercolor="#111111" cellpadding="0" id="table4"> <tr> <td colspan="3" width="0%"> <p class="book_title">Collateralized Debt Obligations:<br> <font size="3">Structures and Analysis </font></td> </tr> <tr> <td width="1%" class="book_details_tags" valign="top" height="16" align="left"> <img border="0" src="../images/blank_2x2.gif" width="2" height="2"><img border="0" src="../images/blank_2x2.gif" width="2" height="2"></td> <td width="52%" class="book_details_tags" valign="top" height="144" align="left" rowspan="9"> <map name="FPMap2"> <area href="../main/ratings.htm" shape="rect" coords="73, 0, 165, 33"> </map> <img border="0" src="../images_title/goodma29.gif" usemap="#FPMap2" width="229" height="175"></td> <td class="book_details" valign="top" height="16" align="left" width="50%"> </td> </tr> <tr> <td width="1%" class="book_details_tags" valign="top" height="16" align="left"> </td> <td class="book_details" valign="top" height="16" align="left" width="50%"> </td> </tr> <tr> <td width="1%" class="book_details_tags" valign="top" height="16" align="left"> </td> <td class="book_details" valign="top" height="16" align="left" width="50%"> </td> </tr> <tr> <td width="1%" class="book_details_tags" valign="top" height="16" align="left"> </td> <td class="book_details" valign="top" height="16" align="left" width="50%"> </td> </tr> <tr> <td width="1%" class="book_details_tags" valign="top" height="16" align="left"> </td> <td class="book_details" valign="top" height="16" align="left" width="50%"> </td> </tr> <tr> <td width="1%" class="book_details_tags" valign="top" height="16" align="left"> </td> <td class="book_details" valign="top" height="16" align="left" width="50%"> </td> </tr> <tr> <td width="1%" class="book_details_tags" valign="top" height="16" align="left"> </td> <td class="book_details" valign="top" height="16" align="left" width="50%"> </td> </tr> <tr> <td width="1%" class="book_details_tags" valign="top" height="16" align="left"> </td> <td class="book_details" height="32" align="center" width="50%" rowspan="2"> </td> </tr> <tr> <td width="1%" class="book_details_tags" valign="top" height="16" align="left"> </td> </tr> </table> </td> </tr> </table> </div> <div align="center"> <center> <table border="0" cellpadding="10" cellspacing="0" style="border-collapse: collapse" bordercolor="#111111" width="468" id="table5"> <tr> <td> <script type="text/javascript"></script> <script type="text/javascript" src="http://pagead2.googlesyndication.com/pagead/show_ads.js"> </script> </td></tr> </table> </center> </div> <table border="0" cellpadding="5" cellspacing="0" style="border-collapse: collapse" bordercolor="#111111" width="100%" id="table6"> <tr> <td width="55%" valign="top"> <p align="left" class="body"><strong style="font-weight: 400">For someone who is new to the CDO market, this is the book I most often recommend. Prior to writing it, the authors edited a (<a href="../titles/fabozzi_and_goodman_2001.htm">2001</a>) collection covering similar material. As an introduction, that book is largely interchangeable with this one.</strong></p> <table border="0" cellpadding="0" cellspacing="0" style="border-collapse: collapse" bordercolor="#111111" width="130" align="left" id="table7"> <tr> <td width="125"> <script type="text/javascript"></script> <script type="text/javascript" src="http://pagead2.googlesyndication.com/pagead/show_ads.js"> </script> </td><td width="5"> </td> </tr> </table> <p align="left" class="body"><strong style="font-weight: 400">Assuming no prior knowledge of CDOs, the authors explain basic structures. Important distinctions are clarified, including balance sheet vs. arbitrage structures, cash flow vs. market value structures, and synthetic vs. non-synthetic structures. </strong></p> <p align="left" class="body"><strong style="font-weight: 400">CDOs are very complex structures that come in numerous forms. My hat is off to the authors for explaining them in such an accessible, well planned manner. Be aware that this is just an elementary introduction. There is a dark side to the CDO market relating to its potential for manipulation and abuse. That is something that receives little attention in this book. For CDO "war stories," see Tavakoli (<a href="../titles/tavakoli_j_(2003).htm">2003</a>). </strong><strong>[Review based on the first edition]</strong></p> </td> <td width="45%" valign="top" class="body" rowspan="2"> <table border="0" cellpadding="0" cellspacing="0" style="border-collapse: collapse" bordercolor="#111111" width="100%" id="table8"> <tr> <td width="100%" bgcolor="#333366"> <p class="header_yellow" align="center">Contents</td> </tr> <tr> <td width="100%" class="explanatory_text"> <table border="1" cellpadding="0" cellspacing="5" style="border-collapse: collapse" bordercolor="#CCCCFF" bgcolor="#CCCCFF" width="100%" id="table9"> <tr> <td class="contents_expanded"> <p class="contents_expanded" style="line-height: 140%; margin-top: 9; margin-bottom: 9">1. Introduction</p> <p class="contents_expanded" style="line-height: 140%; margin-top: 9; margin-bottom: 9">2. Cash Flow CDOs</p> <p class="contents_expanded" style="line-height: 140%; margin-top: 9; margin-bottom: 9">3. High-Yield Default Rates and Their Application to CDO Analysis</p> <p class="contents_expanded" style="line-height: 140%; margin-top: 9; margin-bottom: 9">4. Review of Structured Finance Collateral</p> <p class="contents_expanded" style="line-height: 140%; margin-top: 9; margin-bottom: 9">5. Structured Finance Cash Flow CDOs</p> <p class="contents_expanded" style="line-height: 140%; margin-top: 9; margin-bottom: 9">6. Emerging Market CDOs</p> <p class="contents_expanded" style="line-height: 140%; margin-top: 9; margin-bottom: 9">7. Market Value CDOs</p> <p class="contents_expanded" style="line-height: 140%; margin-top: 9; margin-bottom: 9">8. Synthetic Balance Sheet CDOs</p> <p class="contents_expanded" style="line-height: 140%; margin-top: 9; margin-bottom: 9">9. Synthetic Arbitrage CDOs</p> <p class="contents_expanded" style="line-height: 140%; margin-top: 9; margin-bottom: 9">10. Considerations in Creating CDOs and Their Investment Implications</p> <p class="contents_expanded" style="line-height: 140%; margin-top: 9; margin-bottom: 9">11. Participating Coupon Notes</p> <p class="contents_expanded" style="line-height: 140%; margin-top: 9; margin-bottom: 9">12. Relative Value Methodology for Analyzing Mezzanine Tranches</p> <p class="contents_expanded" style="line-height: 140%; margin-top: 9; margin-bottom: 9">13. Analyzing CDO Equity Tranches</p> <p class="contents_expanded" style="line-height: 140%; margin-top: 9; margin-bottom: 9">14. Payment-in-Kind CDO Tranches</p> <p class="contents_expanded" style="line-height: 140%; margin-top: 9; margin-bottom: 9">15. Secondary Market Trading Opportunities and Managing a Portfolio of CDOs</td> </tr> </table> </td> </tr> </table> <p align="center" class="body"> </p> <p> </td> </tr> <tr> <td width="55%" valign="bottom"> <table border="0" cellpadding="0" cellspacing="0" style="border-collapse: collapse" bordercolor="#111111" width="100%" id="table10"> <tr> <td width="100%"> <script type="text/javascript"></script> <script type="text/javascript" src="http://pagead2.googlesyndication.com/pagead/show_ads.js"> </script> </td></tr> </table> </td> </tr> </table> <div align="left"> <table border="0" cellpadding="10" cellspacing="0" style="border-collapse: collapse" bordercolor="#111111" width="100%" id="table11"> <tr> <td width="50%" bgcolor="#FFFFCC" align="center"> <table border="0" cellpadding="0" cellspacing="0" style="border-collapse: collapse" bordercolor="#111111" bgcolor="#FFFFCC" id="table12"> <tr> <td> <p class="body" style="margin-bottom: 6"><b><font color="#333366" size="3">For related books, see sections:</font></b></p> <p class="bullet" style="margin-top: 5; margin-bottom: 5"> <img border="0" src="../images/bullet.gif" width="20" height="10"><a target="_top" href="../link_topic/markets_industries_MBS_ABS.htm">Markets - MBS, ABS</a></p> <p class="bullet" style="margin-top: 5; margin-bottom: 5"> <img border="0" src="../images/bullet.gif" width="20" height="10"><a target="_top" href="../link_topic/markets_industries_credit_derivatives.htm">Markets - Credit Derivatives, CDOs</a></p> <p class="bullet" style="margin-top: 5; margin-bottom: 5"> <img border="0" src="../images/bullet.gif" width="20" height="10"><a target="_top" href="../link_topic/risk_management_credit_institutional.htm">Risk Management - Credit Risk</a></p> <p class="bullet" style="margin-top: 5; margin-bottom: 5"> <img border="0" src="../images/bullet.gif" width="20" height="10"><a target="_top" href="../link_topic/financial_engineering_credit_risk.htm">Financial Engineering - Pricing Credit Risk</a></td> </tr> </table> </td> </tr> </table> </div> </td> <td>  </td> </tr> </table> </div>  <table border="0" style="border-collapse: collapse" width="100%" cellpadding="0" id="table1" bgcolor="#FFFFFF"> <tr> <td colspan="2" height="12"> <p style="margin-top: 0"> </td> </tr> <tr> <td align="right"> <p align="left" style="margin-bottom: 2px"> <a target="_top" href="http://www.riskexpertise.com/link/advertising.htm"> <font size="1" color="#000000" face="Arial">Ads by Contingency Analysis.</font></a></td> <td align="left"> <p align="right" style="margin-bottom: 2px"> <a target="_top" href="http://www.riskexpertise.com/link/advertising.htm"> <font size="1" color="#000000" face="Arial">Advertise on this site.</font></a></td> </tr> <tr> <td align="center" colspan="2">  <iframe src="http://servedbyadbutler.com/adserve/;ID=147917;size=300x250;setID=93136;type=iframe" allowtransparency="true" background-color="transparent" style="margin: 0px; padding: 0px; border-width: 0px" width="300" height="250" frameborder="0" marginwidth="0" marginheight="0" scrolling="no"> <![if lt IE 4]> <script src="http://servedbyadbutler.com/adserve/;ID=147917;size=300x250;setID=93136;type=js" type="text/javascript"> </script> <noscript> <a href="http://servedbyadbutler.com/go2/;ID=147917;size=300x250;setID=93136"> <img src="http://servedbyadbutler.com/adserve/;ID=147917;size=300x250;setID=93136;type=img" border="0" height="250" width="300" alt=""></a> </noscript><![endif]> </iframe>   </td> </tr> </table> <p align="center" style="margin-top: 20"> <map name="FPMap0_I1"> <area href="http://www.riskbook.com" shape="rect" coords="0, 0, 184, 29" target="_top"></map> <img border="0" src="../images/open_book_riskbook.gif" usemap="#FPMap0_I1" width="185" height="30"></p> <p class="a" align="center"><font face="Arial" size="2"><a href="../main/disclaimer.htm">disclaimer</a></font></p> <p class="a" align="center"><span class="verdana10">website:</span> <a target="_top" href="http://www.contingencyanalysis.com"> <font size="2" face="Arial">http://www.contingencyanalysis.com</font></a><br> <span class="verdana10">books direct link:</span> <a target="_top" href="http://www.riskbook.com"><font size="2" face="Arial">http://www.riskbook.com</font></a><br> copyright <font face="Times New Roman">©</font> Contingency Analysis, 1996 - current</p> <p class="a" align="center"><map name="FPMap1_I1"> <area target="_top" href="http://www.contingencyanalysis.com" shape="rect" coords="0, 0, 240, 88"> </map><img border="0" src="../images/logo_book_white.gif" usemap="#FPMap1_I1" width="241" height="89"></p>  </body>