DCR Duff & Phelps Credit Rating Co . SPECIAL REPORT Asset - Backed Securities
نویسنده
چکیده
February 2000 www.dcrco.com n recent years, collateralized debt obligations (CDOs) have emerged as one of the largest and fastest growing sectors of the asset-backed securities (ABS) market. Due to increasing use of bond and loan collateral within one transaction, the term collateralized debt obligation is becoming more popular, and the terms collateralized bond obligation (CBO) and collateralized loan obligation (CLO) are becoming less common. CDOs are segmented into two categories, cash flow and market value. This article exclusively addresses DCR’s approach to rating cash flow CDOs. The first CDO was issued in 1988, however issuance was limited until the mid-1990s. In 1996 the CDO market began to grow dramatically, and 108 transactions totaling $36 billion were closed that year. Issuance increased steadily in the following three years as shown in Chart 1 on page 2. DCR played a significant role in this growth, having rated 80 transactions totaling $45 billion since 1996. DCR’s Criteria for Rating Cash Flow CDOs
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