The CDO Factory
CDO boutique Cohen & Company has emerged as a major force in the structured credit market. But as a niche operator, it has to think and act fast to stay ahead of the competition. Dalia Fahmy talks to senior management and discovers that the key is constant innovation
Eight years ago, Chris Ricciardi led the first team to launch a derivative that became one of the fastest-growing investments of the decade. That derivative, a collateralised debt obligation based on residential asset-backed securities - known as an ABS CDO - is now being nervously watched by investors around the world as they try to guess what role it will play in the unfolding US subprime mortgage meltdown.
"It's obviously something we're watching quite closely," says Ricciardi, arguing that it
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