Financial Guarantees
Asset-Backed FinanceCollaterized Debt Obligations
Collaterized Debt Obligations
FSA selectively guarantees collateralized debt obligations (CDOs) that comply with our underwriting criteria and single and aggregate risk limits. We have extensive experience structuring and guaranteeing both funded and synthetic CDOs.
Our CDO business falls into three principal categories:
Collateralized Loan Obligations (CLOs)
- Funded securities backed by diversified pools of corporate loans
- Credit default swaps, each referencing a single funded CLO
Collateralized Bond Obligations (CBOs)
- Funded securities backed by diversified pools of corporate bonds
- Credit default swaps, each referencing a single funded CBO
Pooled Corporate Credit Default Swaps (CDS)
- Credit default swaps referencing senior tranches of diversified pools of corporate debt
We also guarantee CDOs of municipal and sovereign debt, including emerging market debt.
Expertise and Service
Our global CDO team consists of experienced specialists based in New York and London. They work with each transaction sponsor to achieve the greatest economic efficiency, whether the objective is to profit from trading spreads, manage capital more efficiently, make regulatory compliance less costly or enhance returns on equity.
Additionally, through our financial products segment, we offer structured GICs – investment contracts that provide FSA–guaranteed returns on invested assets used to collateralize synthetic CDOs, such as the proceeds of credit–linked notes.