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Global Collateralized Debt Obligation Market 2016-2020

About the Collateralized Debt Obligation (CDO) Market

CDO refer to the securities that are packaged as one unit and serves as collateral for investors. The packaged assets comprise the corporate debt, mortgages, credit card, or automotive loans that are otherwise individual fixed income assets, which are sold on the secondary market.

CDO allows banks and large corporations to sell off their debt, freeing up capital to make a reinvestment or take a loan; however, the loan originators have less incentive to collect when the loans are due in the package as these debts are not owned by other investors. This leads to less disciplined approach in adhering to strict lending standards.

Technavio’s analysts forecast the global collateralized debt obligation (CDO) market to grow at a CAGR of 5.02% during the period 2016-2020.

Covered in this report

The report covers the present scenario and the growth prospects of the global collateralized debt obligation (CDO) market for 2016-2020. To calculate the market size, the report considers the total outstanding collateralized debt obligation from the Americas, APAC, and EMEA.

The market is divided into the following segments based on geography:

  • Americas
  • APAC
  • EMEA
Technavio's report, Global Collateralized Debt Obligation (CDO) Market 2016-2020, has been prepared based on an in-depth market analysis with inputs from industry experts. The report covers the market landscape and its growth prospects over the coming years. The report also includes a discussion of the key vendors operating in this market.

Key vendors
  • Bank of America
  • Citigroup
  • Goldman Sachs
  • JPMorgan Chase
Other prominent vendors
  • Barclays
  • BNP Paribas
  • Deutsche Bank
  • HSBC
  • Morgan Stanley
  • Royal Bank of Scotland
  • Société Générale S.A.
  • SunTrust Bank
  • UniCredit
  • Wells Fargo
Market driver
  • Growth in integration of financial markets
  • For a full, detailed list, view our report
Market challenge
  • Insufficient risk management and risk valuation capabilities
  • For a full, detailed list, view our report
Market trend
  • Collateralization of derivatives
  • For a full, detailed list, view our report
Key questions answered in this report
  • What will the market size be in 2020 and what will the growth rate be?
  • What are the key market trends?
  • What is driving this market?
  • What are the challenges to market growth?
  • Who are the key vendors in this market space?
  • What are the market opportunities and threats faced by the key vendors?
  • What are the strengths and weaknesses of the key vendors?


Press Release

Technavio Announces the Publication of its Research Report – Global Collateralized Debt Obligation (CDO) Market 2016-2020

Technavio recognizes the following companies as the key players in the global collateralized debt obligation (CDO) market: Bank of America, Citigroup, Goldman Sachs, and JPMorgan Chase.

Other Prominent Vendors in the market are: Barclays, BNP Paribas, Deutsche Bank, HSBC, Morgan Stanley, Royal Bank of Scotland, Société Générale S.A., SunTrust Bank, UniCredit, and Wells Fargo.

Commenting on the report, an analyst from Technavio’s team said: “A trend which is playing a key role in market growth is the collateralization of derivatives. Central clearing was introduced in the repo and the derivatives market. Collateral management is one of the important domains for the market participants because of the growing advances in technologies. This has helped the participants in reducing the funding costs and the counterparty risk. Many regulations in the financial industry domain have led to the introduction of derivatives legislation and centralized clearing of derivatives. Many financial institutions like the banks are focusing on the transparency of the collateral that is available to the market participant by putting more focus on the efficient decision-making process. Banks are also trying to reduce the operational risks that are involved in a collateral transaction by monitoring the credit policies and by controlling the credit risk.”

According to the report, a key driver of market growth is the increased integration of financial markets. The growth in the integration of financial markets helps in increasing the liquidity in the equity market. Integrated financial markets help domestic investors buy foreign assets and foreign investors to buy domestic assets, reducing the risks involved.

We find that the regulatory changes have no impact on the functioning of the capital market because the involvement of different international markets has led to an efficient global allocation of savings for future use. This helps different countries create an opportunity for portfolio diversification, sharing of the risks, enhance the growth, and raise the standard of living. Therefore, it is important to focus on the market integration through various capital flows in different international markets, various co-movements of returns, and liquidity position of different markets.

Further, the report states that one challenge that could hamper market growth is the insufficient risk management and risk valuation capabilities.

Companies Mentioned

Bank of America, Citigroup, Goldman Sachs, JPMorgan Chase, Barclays, BNP Paribas, Deutsche Bank, HSBC, Morgan Stanley, Royal Bank of Scotland, Société Générale S.A., SunTrust Bank, UniCredit, Wells Fargo.

  • Executive summary
    • Highlights
  • Scope of the report
    • Market overview
      • Table Countries covered for market analysis
    • Top-vendor offerings
      • Table Product offerings
  • Market research methodology
    • Research methodology
    • Economic indicators
  • Introduction
    • Key market highlights
    • Description of CDO
    • Typical tranche scheme
      • Table Typical tranche scheme
    • Process involved in a CDO
      • Table Process involved in a CDO
  • Market landscape
    • Market overview
      • Table Types of CDOs by category
      • Table CLO 2007-2015 (Q1-Q4) ($ billions)
      • Table Synthetic funds 2007-2015 (Q1-Q4) ($ billions)
      • Table Collateralized debt 2007-2015 (Q1-Q4) ($ billions)
      • Table CDO by types
      • Table Cash flow CDO 2007-2015 (Q1-Q4) ($ billions)
      • Table Hybrid CDO 2007-2015 (Q1-Q4) ($ billions)
      • Table Market value CDO 2007-2015 (Q1-Q4) ($ billions)
      • Table Synthetic funded CDO 2007-2015 (Q1-Q4) ($ billions)
      • Table Types of CDO by purpose
      • Table Arbitrage CDO 2007-2015 (Q1-Q4) ($ billions)
      • Table Balance sheet CDO 2007-2015 (Q1-Q4) ($ billions)
    • Market size and forecast
      • Table Global CDO market 2015-2020 ($ trillions)
      • Table Outstanding CDO by category 2015
      • Table Outstanding CDO by category 2007-2015 ($ millions)
      • Table Outstanding CDO by type 2015
      • Table Outstanding CDO by type 2007-2015 ($ millions)
      • Table Outstanding CDO by purpose 2015
      • Table Outstanding CDO by purpose 2007-2015 ($ millions)
    • Five forces analysis
      • Table Five forces analysis
  • Geographical segmentation
    • Geographical segmentation 2015
      • Table Geographical segmentation 2015
    • Geographical segmentation 2020
      • Table Geographical segmentation 2020
    • Americas
      • Table CDO market in Americas 2015-2020 ($ trillions)
    • EMEA
      • Table CDO market in EMEA 2015-2020 ($ trillions)
    • APAC
      • Table CDO market in APAC 2015-2020 ($ billions)
  • Market drivers
    • Dynamic market structure
    • Growth in integration of financial markets
    • Third-party due diligence services
  • Impact of drivers
    • Table Impact of drivers
  • Market challenges
    • Problems arising due to incorrect ratings
    • Insufficient risk management and risk valuation capabilities
    • Limited legal certainty and operational inefficiency
    • Collusion in FX market
  • Impact of drivers and challenges
    • Table Impact of drivers and challenges
  • Market trends
    • Advances in technology
    • Enhanced strategic formulation and adoption of structuring and pricing tools
      • Table Global preamble expectations from FX market participants
    • Collateralization of derivatives
  • Vendor landscape
    • Competitive landscape
      • Table Global CDO outstanding 2007-2015 ($ trillions)
    • Other prominent vendors
  • Key vendor analysis
    • Bank of America
    • Citigroup
    • Goldman Sachs
    • JPMorgan Chase
  • Appendix
    • List of abbreviations
  • Explore Technavio

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