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Charter Research, a division of Standard & Poor's, has added a Collateralized Debt Obligation (CDO) modeling facility to its CONQUEST product which is used in analyzing Commercial Mortgage-Backed Securities (CMBS).
The new feature will enable users to run stress scenarios that will provide an idea about the likely behavior of the cash flows of CDOs, S & P reports.
Using this credit model, investors can "test the propensity of the loans underlying the CDO collateral to default, prepay, and/or extend."
Kathy Rainey, managing director, Charter Research, said, "Issuers and investors have asked Standard & Poor's to provide this service ...
Source: HighBeam Research, Charter Adds CDO Modeling Feature.(Standard and Poor's Corp.)(Brief...