CDO and Structured Funds Group March 2002
The Barclays Capital
Guide to Cash Flow
Collateralized Debt Obligations
Barclays Capital Guide to Cash Flow Collateralized Debt Obligations i
Table of Contents
Introduction.................................................................................................................. 1
Collateral Asset Classes................................................................................................1
The Asset Manager .......................................................................................................1
Note Classes and the Priority of Payments ...................................................................1
Arbitrage, Balance Sheet and Synthetic CDOs .............................................................2
Market Growth ...............................................................................................................2
Product Evolution...........................................................................................................2
Benefits to Asset Managers and CDO Equity Investors.......................................... 4
Insulation from Market Value Volatility ..........................................................................4
Leveraged Yield.............................................................................................................4
Broad Diversification......................................................................................................4
Increase in Assets under Management .........................................................................5
Committed Funds ...................................................................................... ...