What is Collateralized Debt Obligation - Global Market?
Collateralized Debt Obligation (CDO) is a complex financial product that banks use to pool together individual loans into a product sold to investors on the secondary market. These individual loans could be anything from home mortgages to corporate debt. They are called collateralized because the promised repayments of the loans are the collateral that gives the CDOs value. The global market for CDOs is vast and varied, with different types of CDOs being traded. Collateralized Loan Obligations (CLOs) are a type of CDO that pools together commercial loans. These are typically loans taken out by businesses, and they can be a way for banks to offload the risk of these loans onto investors. Collateralized Bond Obligations (CBOs) are similar, but they pool together bonds instead of loans. These bonds could be anything from government bonds to corporate bonds. Collateralized Synthetic Obligations (CSOs) are a more complex type of CDO that includes derivatives such as credit default swaps in the pool of assets. Finally, Structured Finance CDOs (SFCDOs) are a type of CDO that includes other CDOs in the pool of assets. This can make them particularly risky, as the performance of the SFCDO is dependent on the performance of the underlying CDOs.
Collateralized loan obligations (CLOs), Collateralized bond obligations (CBOs), Collateralized synthetic obligations (CSOs), Structured finance CDOs (SFCDOs) in the Collateralized Debt Obligation - Global Market:
CDOs are used in a variety of areas, including by Asset Management Companies, Fund Companies, and others. Asset Management Companies may use CDOs as a way to diversify their portfolios and manage risk. By investing in a CDO, they can gain exposure to a wide range of assets without having to buy each one individually. Fund Companies may use CDOs in a similar way, as a tool for diversification and risk management. Other entities, such as insurance companies or pension funds, may also invest in CDOs as a way to earn a return on their capital. However, it's important to note that investing in CDOs can be risky, as the value of the CDO is dependent on the performance of the underlying loans or bonds. If these loans or bonds default, the value of the CDO can plummet.
Asset Management Company, Fund Company, Others in the Collateralized Debt Obligation - Global Market:
The global Collateralized Debt Obligation market is a significant one, with a value of US$ 136440 million in 2022. It is projected to grow to US$ 171650 million by 2029, representing a Compound Annual Growth Rate (CAGR) of 3.9% during the forecast period of 2023-2029. This growth is driven by a variety of factors, including the desire for diversification and risk management among investors. The market is dominated by several key players, including Citigroup, Credit Suisse, Morgan Stanley, J.P. Morgan, and Wells Fargo, which collectively account for about 50% of the market share. The majority of the market is concentrated in North America, which holds about 50% of the global market share. This is likely due to the sophisticated financial markets in this region, which allow for the trading of complex products like CDOs.
| Report Metric | Details |
| Report Name | Collateralized Debt Obligation - Market |
| Forecasted market size in 2029 | US$ 171650 million |
| CAGR | 3.9% |
| Forecasted years | 2023 - 2029 |
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| Global Collateralized Debt Obligation market, by Application |
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| Forecast units | USD million in value |
| Report coverage | Revenue and volume forecast, company share, competitive landscape, growth factors and trends |
