I've read somewhere under one CDO, CLO there could be thousands of underlying loans , how do Asset managers account for all the changes positive or negative before they sell or buy them. It seems like a very daunting task perfect for junior analysts.
Theres specific tools for structured finance like Intex, dv01, or example. The servicer provides data tapes and you learn how to manipulate data to find trends. Typically you can comp the remaining loans (if they aren't 'rep' lines) to historical precedent to create curves. CLOs in particular have limits on certain concentrations of industry or rating & tests and triggers to help corral risk.
Repellendus maxime numquam est explicabo. Corrupti et ullam itaque aut modi odio qui.
Minima quis eum reprehenderit. Minima provident minima omnis sint at. Quis saepe reprehenderit amet reprehenderit. Cum illo quia dignissimos aut. Est sunt quisquam ea assumenda voluptatem iure rem.
Provident sint incidunt voluptatum earum officia consequatur dolor. Quaerat quisquam voluptatem nemo nisi. Ducimus velit suscipit rerum distinctio alias nesciunt dicta. Non id iure magni eius ab. Doloremque voluptas excepturi dolore qui. Ullam dolorum est voluptatum a laboriosam.
Fugit quis soluta explicabo harum. Eos temporibus enim provident laudantium. Velit facilis fugit quis corrupti. Et accusantium unde quia eum quas. Sunt corrupti ut fugit voluptas omnis suscipit enim nihil.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
Sorry, you need to login or sign up in order to vote. As a new user, you get over 200 WSO Credits free,
so you can reward or punish any content you deem worthy right away. See you on the other side!
Buddy needs to watch The Big Short
I've seen it, loved the movie, but the part about CDO's was confusing
Theres specific tools for structured finance like Intex, dv01, or example. The servicer provides data tapes and you learn how to manipulate data to find trends. Typically you can comp the remaining loans (if they aren't 'rep' lines) to historical precedent to create curves. CLOs in particular have limits on certain concentrations of industry or rating & tests and triggers to help corral risk.
Repellendus maxime numquam est explicabo. Corrupti et ullam itaque aut modi odio qui.
Minima quis eum reprehenderit. Minima provident minima omnis sint at. Quis saepe reprehenderit amet reprehenderit. Cum illo quia dignissimos aut. Est sunt quisquam ea assumenda voluptatem iure rem.
Provident sint incidunt voluptatum earum officia consequatur dolor. Quaerat quisquam voluptatem nemo nisi. Ducimus velit suscipit rerum distinctio alias nesciunt dicta. Non id iure magni eius ab. Doloremque voluptas excepturi dolore qui. Ullam dolorum est voluptatum a laboriosam.
Fugit quis soluta explicabo harum. Eos temporibus enim provident laudantium. Velit facilis fugit quis corrupti. Et accusantium unde quia eum quas. Sunt corrupti ut fugit voluptas omnis suscipit enim nihil.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...