CDO-Squared is a
collateralized debt obligation
A collateralized debt obligation (CDO) is a type of structured asset-backed security (ABS). Originally developed as instruments for the corporate debt markets, after 2002 CDOs became vehicles for refinancing mortgage-backed securities (MBS).Le ...
s backed primarily by the tranches issued by other CDOs. These instruments became popular before the
financial crisis of 2007–08
Finance is the study and discipline of money, currency and capital assets. It is related to, but not synonymous with economics, the study of production, distribution, and consumption of money, assets, goods and services (the discipline of f ...
. There were 36 CDO-Squared deals made in 2005, 48 in 2006 and 41 in 2007.
Merrill Lynch
Merrill (officially Merrill Lynch, Pierce, Fenner & Smith Incorporated), previously branded Merrill Lynch, is an American investment management and wealth management division of Bank of America. Along with BofA Securities, the investment ba ...
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
The United States subprime mortgage crisis was a multinational financial crisis that occurred between 2007 and 2010 that contributed to the 2007–2008 global financial crisis. It was triggered by a large decline in US home prices after the col ...
.
Goldman Sachs
Goldman Sachs () is an American multinational investment bank and financial services company. Founded in 1869, Goldman Sachs is headquartered at 200 West Street in Lower Manhattan, with regional headquarters in London, Warsaw, Bangalore, Ho ...
appears to be the last bank to hold CDOs-Squared, holding $50 million 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
Sources
*
Derivatives (finance)
United States housing bubble
{{finance-stub