- Language: English
- Published: June 2012
- Region: Global
Criteria | Structured Finance | CDOs: Global Cash Flow And Synthetic CDO Criteria: Sizing Default Risk Mar 02
- Published: March 2002
- Region: Global
- Standard & Poors
Analysts use various techniques to determine the potential loss characteristics of an asset pool in a structured financing. The analytical method may vary, depending on the size of the pool being examined. For example, the "weak-link" approach, which assumes the default of all assets rated lower than the structured financing, is often employed when the asset pool is comprised of a small number of credits. By contrast, an actuarial approach may be appropriate for extremely large asset pools that have relatively homogenous performance characteristics. Traditionally, analysts have used an obligor-specific approach when analyzing the small to medium-sized asset pools found in many CDO transactions. The obligor-specific asset analysis accounts for the distribution of any combination of potential obligor defaults that...
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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. SHOW LESS READ MORE >