- Language: English
- 56 Pages
- Published: July 2009
- Region: Europe
CDO Spotlight: Standard & Poor's Surveillance Process For Monitoring U.S. Cash Flow CLO Transactions
- Published: April 2011
- Standard & Poors
Standard and Poors RatingsXpress Credit Research provides in-depth coverage of international corporates, financial institutions, insurance companies, utilities, sovereigns and structured finance programs. RatingsXpress Credit Research lets users determine the credit rating of holdings and identify key factors underlying an issuer's creditworthiness, distinguishes the different risk exposures for new and existing deals, and provides an understanding of how their analysts interpret key regulatory, political and environmental events and their economic impact.
Research Type: Commentary
Criteria articles describe the thought process and methodology Standard & Poor's analysts use in determining ratings. These commentary pieces discuss both the quantitative (economic and financial) and qualitative (business analysis and caliber of management) aspects of the analysis, as well as legal issues.
In its surveillance process for analyzing U.S. cash flow collateralized loan obligation (CLO) transactions, Standard & Poor's Ratings Services assesses whether the ratings currently assigned to a transaction are consistent with the credit quality of the securitized assets and the level of credit enhancement the CLO structure provides. Our rating actions reflect quantitative and qualitative analysis of the transactions according to our criteria. We currently rate more than 600 U.S. cash flow CLOs. (Listen to the related podcast titled, "What?s Behind Standard & Poor?s U.S. Cash Flow CLO Surveillance Effort," dated April 25, 2011.) Most CLO transactions close before purchasing the full targeted amount of their collateral portfolio. Collateral managers typically covenant to purchase the remainder of the required collateral...
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