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Basics
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Credit derivatives terminology
By
Vinod Kothari
Single
tranche synthetic CDO:
A synthetic CDO that offers only one tranche, generally tailored for a
particular investor, normally with a rating, spread and composition of the
assets that the investor desires, with the rest of the risk on the assets
retained by the structurer and generally hedged on the credit books of the
structurer. Also known as bespoke
synthetic CDO.
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