CDO-Squared

CDO-Squared is an investment in the form of a special-purpose entity (SPE) with securitization payments backed by collateralized debt obligation tranches. A collateralized debt obligation is a product structured by a bank in which an investor buys a share of a pool of bonds, loans, asset-backed securities, and other credit instruments. Payments resulting from those bonds, loans, asset-backed securities, and other instruments are then passed on to the holders of the shares of the collateralized debt obligation. It is a way to invest in multiple credit instruments and diversify risk.^[1][2] These instruments became popular before the financial crisis of 2007–08. There were 36 CDO-Squared deals made in 2005, 48 in 2006 and 41 in 2007. Merrill Lynch was a big producer, creating and selling 11 of them.^[3]

The collapse of the market for collateralized debt obligations and CDO-Squared contributed to the 2008 subprime mortgage crisis.^[2] Goldman Sachs appears to be the last bank to hold CDOs-Squared, holding $50 million (~$59.8 million in 2023) in June 2018.^[4]

2004 Abacus 2004-2 Abacus 2004-3 ACA 2004-1 Cascade Funding I Crystal Cove Davis Square Funding III Dunhill E-Trade III Glacier Funding I Glacier Funding II Independence V Jupiter High Grade Lakeside II Sierra Madre Funding

2005 Abacus 2005-1 Abacus 2005-2 Abacus 2005-3 Abacus 2005-5 Adirondack 2005-1 Altius I Funding Broderick 1 Camber 3 Plc Class V Funding Coolidge Funding Davis Square Funding IV E-Trade IV Fort Sheridan Glacier Funding III G Street Finance Huntington Independence VI Jupiter High Grade I Jupiter High Grade II Jupiter High Grade III Khaleej II Kleros Preferred Funding Lenox Lexington Capital Funding

2006 Auriga Bernoulli High Grade I Broadwick Funding Broderick 2 Class V Funding II Commodore V Davis Square Funding VI Fortius II Funding GSC 2006-2m Hout Bay 2006-1 Hudson High Grade Funding 2006-1 Hudson Mezzanine Funding 2006-1 Independence VII Ipswich Street Jupiter High Grade IV Kleros Preferred Funding II Kleros Preferred Funding III Kleros Real Estate I Kleros Real Estate II Kleros Real Estate III Libertas Preferred Funding I Octans I Pampelonne I West Coast Funding I

2007 Abacus 2007-AC1 Glacier Funding V Newbury Street Norma I Point Pleasant 2007-1 Timberwolf 1 Vertical 2007-1 Volans

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