CPDO

It was Buttonwood's article mentioned a new credit derivative last week; it called CPDO, Constant Proportion Debt Obligations. I just wondering what on earth the synthetic credit instrument it is. Then decide to find out the answer.

Apparently it's a hot stuff. You could see those references below. It was all talked about CPDO after August 2006.
Its first debut was at August 2006 launched by Abn Amro named SURF. SURF is a fixed-income bond with triple-A rating from major bond rating organizations. Investors could earn more coupons than other AAA bonds.

It's worth a look.
You may try the references 1 and 2 to read the outline of this new instrument.
If you really have interest in it then you could see references 3 and 4 to feel the joy of Abn Amro as the inventor of CPDO and the covering letter of SURF.
After that you could go to reference 5 to know what the havoc it caused to credit derivative market recently.
To savor it in an easier way I recommend you the references 6 and 7, you could find how plainly they explain CPDO to you.
At last, there are several URLs remained and left for you to saturate yourself with CPDO raves.


References:
1. http://www.economist.com/daily/columns/techview/displaystory.cfm?story_id=8150178
2. http://www.rgemonitor.com/blog/economonitor/157230
3. http://www.abnamro.com.au/content/media/articles/308.asp
4. http://www.nuclearphynance.com/User%20Files/393/BLP10636.pdf
5. http://ftalphaville.ft.com/blog/2006/11/01/555/daily-report-credit-default-swaps-6/
6. http://www.fitchratings.com.au/show_featart.asp?rel_id=410
7. http://interfluidity.powerblogs.com/posts/1163375565.shtml

http://www.riskchat.com/_articles/00000008.htm
http://www.wilmott.com/messageview.cfm?catid=4&threadid=41739
http://www.nuclearphynance.com/Show%20Post.aspx?PostIDKey=85967
http://www.aleablog.com/2006/08/30/70/