CASH vs. SYNTHETIC CDOs
DOI:
https://doi.org/10.29358/sceco.v0i22.325Keywords:
true-sale CDO securitization, synthetic CDO securitization, credit derivatives, cash asset-backed CDO securities, synthetic asset-backed CDO securitiesAbstract
During the past few years, in the recent post-crisis aftermath, global asset managers are constantly searching new ways to optimize their investment portfolios while financial and banking institutions around the world are exploring new alternatives to better secure their financing and refinancing demands altogether with the enhancement of their risk management capabilities. We will exhibit herewith a comparison between the true-sale and synthetic CDO securitizations as financial markets-based funding, investment and risks mitigation techniques, highlighting certain key structuring and implementation specifics on each of them.Downloads
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