abn-offers-a-credit-derivative-option-for-the-masses

ABN offers a credit derivative option for the masses

ABN AMRO continues to lead credit derivative innovation with its first-ever
Constant Proportion Debt Obligation
ABN AMRO this week launched its first public constant proportion debt obligation CPDO.

This new form of synthetic credit investment carries a full AAA rating from Standard Poors on both principal and coupon.

It uses elements from both CDO and CPPI technology to produce a new non-principal-protected, fixed-income, credit-investment tool.

The CPDO generates returns through exposure to a portfolio of credit default swaps CDS which is linked to highly liquid CDS indices. The size of the portfolio is adjusted dynamically so that the CPDO only uses the leverage it needs in order to make the scheduled principal and interest payments. The structure of the CPDO is designed to have a stable rating with a...
¬ Haymarket Media Limited. All rights reserved.

FinanceAsia has updated its subscription model.

Registered readers now have the opportunity to read 5 articles from our award-winning website for free.

To obtain unlimited access to our award-winning exclusive news and analysis, we offer subscription packages, including single user, team (2-10 users), or office-wide licences.

To help you and your colleagues access our proprietary content, please contact us at subscriptions@financeasia.com, or +(852) 2122 5222

Article limit is reached.

Hello! You have used up all of your free articles on FinanceAsia.

To obtain unlimited access to our award-winning exclusive news and analysis, we offer subscription packages, including single user, team (2-10 users), or office-wide licences. To help you and your colleagues access our proprietary content, please contact us at subscriptions@financeasia.com, or +(852) 2122 5222