Invesco
The UK firm is a pioneer in its field, as its Tenzing CFO deal proved
| Tenzing CFO Deal structure |
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The collateralized debt obligation (CDO) market continues to be the centre of attention in the financial markets. In May, though, this was for all the wrong reasons, as the focus was on a technical dislocation in correlation models. Breathtaking change in the scale and scope of assets used as collateral and structuring complexity have combined to create an area where the yields, fees and risks are perceived to be high compared with many other fixed-income asset classes. However, it is widely perceived that improvements in modelling technology and choice of underlying assets have brought greater comfort to the buy side.
Consequently, CDOs are no longer the preserve of specialists. Lured by enhanced yield, a range of new investors have jumped on the bandwagon and it is now part of the fixed-income mainstream.
It is in this context that Invesco has played an important role in providing investors with a template for buying CDOs, working closely with portfolio managers and investment banks to create financial engineering solutions and continuing support for investors.