Financial Times FT.com

Moody’s offers new tools to value CDOs

By Saskia Scholtes in New York

Published: November 16 2007 02:25 | Last updated: November 16 2007 02:25

Moody’s Investors Service on Thursday unveiled the first of a new set of measures to help investors value illiquid debt securities in stressed markets.

The new tools, which provide guidance on the fundamental value of complex securities called collateralised debt obligations, are intended to supplement the rating agency’s more traditional credit ratings for such instruments. CDOs are securities backed by packages of corporate bonds, loans or consumer debts such as mortgages.

You have viewed your allowance of free articles. If you wish to view more, click the button below.

Read this