single tranche CDO
Noun


A synthetic CDO in which the investor chooses or agrees to the list of reference entities, the rating of the tranche, maturity of the transaction, coupon type (fixed or floating), subordination level, type of collateral assets, and other details, where there is no cash flow waterfall structure and the bank holds the rest of the capital structure it does not place with the investor.

Synonym(s): 
  • bespoke CDO.
Comment: 
The bank and the investor work closely to achieve the investment goal.