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Constant Proportion Debt Obligation (CPDO) « Riskopedia
Investor receives LIBOR plus 200bp pa on the CPDO. • Assume the arranger receives 60bp pa. • The net position is 265bp (525 - (200 + 60)). • The excess spread is set aside to cover certain costs: 1. Roll costs (as index is reset) ...

Guambat Stew: That CPDO thingie again
Of the CPDO, for instance, he said, incredulously, "the CPDO is a ten year triple-A bond paying LIBOR plus 200 bps which bowls strikes every time yet goes down the lane sort of like those wonky pet toys which roll haphazardly around the ...

Requiem for the CPDO
The CPDOs, funds that use credit-default swaps to bet on company creditworthiness, were downgraded because of “spread widening and increasing volatility” in the credit derivatives market, the New York-based ratings company said today. ...

Very first CPDO unwinds
I have talked about CPDOs in the past. http://www.noelwatson.com/blog/SearchView.aspx?q=CPDO. last week the very first CPDO unwound. http://ftalphaville.ft.com/blog/2008/10/17/17193/requiem-for-the-cpdo/. Note details here ...

Credit Watchers » Blog Archive » Moody's Disciplines Employees In ...
Moody's Disciplines Employees In Europe Over CPDO Ratings Wall Street Journal - Jul 1, 2008 By DONNA KARDOS Moody's Investors Service said it has begun employee disciplinary proceedings and accelerated moves to strengthen its ratings ...

The linked post perfect describes how **cked up things were
A CPDO issuer accepts principal from investors, and commits up front to a coupon and principal repayment schedule. The issuer puts the money in a leveraged portfolio that includes high yield, risky debt (or credit derivatives), ...

The Moody's CPDO Scandal: Heads Begin to Roll - Finance Blog ...
The external review of the Moody's CPDO scandal has now been concluded, and as a result Moody's says that it "has initiated employee disciplinary proceedings".

CPDO, Constant Proportion Debt Obligation, CPDOs
A Constant Proportion Debt Obligation (or CPDO) is a type of credit derivative sold to investors looking for long term exposure to credit risk on a highly rated note. They employ dynamic leveraging in a similar (but opposite) way to ...

Farmers Test New Poultry
The CPDO had distributed 150000 parent turkeys among farmers and the reproduction level had reached a healthy level. It would take not less than two years when the turkey meat would be available at the corner poultry shop. ...

CPDOs Approach Cash-Out Events
Spread widening on the CDS indices the CPDOs reference impacts directly a CPDOs net asset value. CPDOs must continually mark their portfolios to market - the wider spreads move, the lower the net asset value of the CPDO falls as it is ...