Collateralized Debt Obligations (CDOs)

PUBLISHED: January 27, 2025

PAGES: 130 Pages

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Description

Global Collateralized Debt Obligations (CDOs) Market to Reach US$63.6 Billion by 2030

The global market for Collateralized Debt Obligations (CDOs) estimated at US$33.3 Billion in the year 2024, is expected to reach US$63.6 Billion by 2030, growing at a CAGR of 11.4% over the analysis period 2024-2030. Asset Management Companies, one of the segments analyzed in the report, is expected to record a 11.8% CAGR and reach US$39.0 Billion by the end of the analysis period. Growth in the Fund Companies segment is estimated at 10.9% CAGR over the analysis period.

The U.S. Market is Estimated at US$8.8 Billion While China is Forecast to Grow at 10.6% CAGR

The Collateralized Debt Obligations (CDOs) market in the U.S. is estimated at US$8.8 Billion in the year 2024. China, the world's second largest economy, is forecast to reach a projected market size of US$9.8 Billion by the year 2030 trailing a CAGR of 10.6% over the analysis period 2024-2030. Among the other noteworthy geographic markets are Japan and Canada, each forecast to grow at a CAGR of 10.5% and 9.6% respectively over the analysis period. Within Europe, Germany is forecast to grow at approximately 8.3% CAGR.

Global Collateralized Debt Obligations (CDOs) Market - Key Trends and Drivers Summarized

What Are Collateralized Debt Obligations (CDOs) and How Do They Work?

Collateralized Debt Obligations (CDOs) are complex financial instruments that pool together various types of debt, such as mortgages, loans, and bonds, and then slice them into different tranches or segments based on risk and return. These tranches are sold to investors, with higher-risk tranches offering higher returns and lower-risk tranches offering more stable but lower yields. CDOs gained notoriety during the 2008 financial crisis for their role in amplifying systemic risk within the financial sector. However, they remain a significant part of the structured finance market, especially in managing and redistributing credit risk. Financial institutions create CDOs to free up capital, while investors use them to diversify their portfolios. Despite their complexity, CDOs continue to attract interest, driven by a global thirst for yield in a low-interest-rate environment.

What Are the Main Types and Segments of CDOs?

The CDO market is segmented into various types, including Collateralized Loan Obligations (CLOs), Collateralized Bond Obligations (CBOs), and Structured Finance CDOs. CLOs, which are backed by a pool of corporate loans, are the most common and have been a major driver of the market’s resurgence since the financial crisis. CBOs are similar but backed by a pool of corporate bonds. Structured Finance CDOs, on the other hand, consist of tranches from other asset-backed securities, making them even more complex. These instruments are also categorized by the nature of the underlying assets and the level of risk and return associated with each tranche. The top-rated tranches (senior tranches) are the safest but offer lower returns, while the equity tranches carry the highest risk but promise higher potential rewards. The demand for CDOs varies by investor type, with institutional investors such as pension funds, insurance companies, and hedge funds being the primary buyers.

What Trends Are Influencing the CDO Market?

Several trends are shaping the CDO market. One key trend is the renewed interest in CLOs, as they offer attractive yields in an era of historically low interest rates. CLOs have become a popular asset class for institutional investors seeking higher returns while managing credit risk through diversified loan pools. Another significant trend is the increasing scrutiny and regulatory oversight of the CDO market. Financial reforms such as the Dodd-Frank Act and the implementation of the Volcker Rule have aimed to make the market more transparent and reduce systemic risks. The use of sophisticated risk assessment models and machine learning algorithms is also transforming how CDOs are structured and monitored. Technological advancements have enabled better analysis and management of the underlying assets, increasing investor confidence. Furthermore, the global push toward sustainable finance has led to the emergence of green CDOs, which pool debt from environmentally responsible projects, appealing to socially conscious investors.

What Factors Are Driving the Growth in the CDO Market?

The growth in the CDO market is driven by several factors, including the demand for higher-yield investment products, advancements in risk modeling, and the resurgence of corporate lending. One primary driver is the low interest rate environment, which has made traditional fixed-income investments less attractive and pushed institutional investors toward structured finance products like CDOs. The growth in corporate debt issuance, especially in sectors like leveraged loans, has provided a steady supply of assets for CLOs, boosting their popularity. Innovations in financial technology have also improved the structuring and monitoring of CDOs, making them more appealing to risk-averse investors. Regulatory changes that promote more transparency and risk mitigation have further supported market growth. Additionally, the demand for portfolio diversification and risk management solutions has led to a broader acceptance of CDOs as an essential investment tool. Finally, the introduction of ESG (environmental, social, and governance) criteria in structured finance has attracted a new wave of investors focused on sustainable investments.

SCOPE OF STUDY:

The report analyzes the Collateralized Debt Obligations (CDOs) market in terms of units by the following Segments, and Geographic Regions/Countries:

Segments:

Institution Type (Asset Management Companies, Fund Companies, Other Institution Types)

Geographic Regions/Countries:

World; USA; Canada; Japan; China; Europe; France; Germany; Italy; UK; Rest of Europe; Asia-Pacific; Rest of World.

Select Competitors (Total 43 Featured) -

Bank of America
Barclays Bank Plc
BNP Paribas SA
Citigroup, Inc.
Deutsche Bank AG
Goldman Sachs & Co. LLC
ICICI Bank Ltd.
Jefferies Financial Group Inc.
JPMorgan Chase & Co
Morgan Stanley

Product Code: MCP25678

I. METHODOLOGY

II. EXECUTIVE SUMMARY

1. MARKET OVERVIEW
- Influencer Market Insights
- World Market Trajectories
- Economic Frontiers: Trends, Trials & Transformations
- Collateralized Debt Obligations (CDOs) - Global Key Competitors Percentage Market Share in 2024 (E)
- Competitive Market Presence - Strong/Active/Niche/Trivial for Players Worldwide in 2024 (E)
2. FOCUS ON SELECT PLAYERS
3. MARKET TRENDS & DRIVERS
- Increasing Complexity of Structured Finance Instruments Expands Addressable Market Opportunity
- Focus on Risk Diversification and Portfolio Optimization Strengthens Business Case for CDOs
- Impact of Global Economic Recovery and Liquidity Conditions Propels Market Growth
- Growing Use of Synthetic CDOs and Credit Derivatives Accelerates Market Trends
- Demand for Securitized Debt Instruments and Structured Credit Solutions Enhances Appeal
- Focus on Enhancing Risk Management and Credit Analysis Tools Strengthens Market Potential
- Impact of Interest Rate Fluctuations and Monetary Policies Drives Market Activity
- Emergence of ESG-Linked Structured Finance Products Expands Market Opportunities
- Investment in Advanced Analytics and Predictive Modeling Enhances CDO Valuation
- Focus on Enhancing Transparency and Disclosure Standards Drives Market Trust
4. GLOBAL MARKET PERSPECTIVE
- TABLE 1: World Collateralized Debt Obligations (CDOs) Market Analysis of Annual Sales in US$ Million for Years 2015 through 2030
- TABLE 2: World Recent Past, Current & Future Analysis for Collateralized Debt Obligations (CDOs) by Geographic Region - USA, Canada, Japan, China, Europe, Asia-Pacific and Rest of World Markets - Independent Analysis of Annual Sales in US$ Million for Years 2024 through 2030 and % CAGR
- TABLE 3: World Historic Review for Collateralized Debt Obligations (CDOs) by Geographic Region - USA, Canada, Japan, China, Europe, Asia-Pacific and Rest of World Markets - Independent Analysis of Annual Sales in US$ Million for Years 2015 through 2023 and % CAGR
- TABLE 4: World 15-Year Perspective for Collateralized Debt Obligations (CDOs) by Geographic Region - Percentage Breakdown of Value Sales for USA, Canada, Japan, China, Europe, Asia-Pacific and Rest of World Markets for Years 2015, 2025 & 2030
- TABLE 5: World Recent Past, Current & Future Analysis for Asset Management Companies by Geographic Region - USA, Canada, Japan, China, Europe, Asia-Pacific and Rest of World Markets - Independent Analysis of Annual Sales in US$ Million for Years 2024 through 2030 and % CAGR
- TABLE 6: World Historic Review for Asset Management Companies by Geographic Region - USA, Canada, Japan, China, Europe, Asia-Pacific and Rest of World Markets - Independent Analysis of Annual Sales in US$ Million for Years 2015 through 2023 and % CAGR
- TABLE 7: World 15-Year Perspective for Asset Management Companies by Geographic Region - Percentage Breakdown of Value Sales for USA, Canada, Japan, China, Europe, Asia-Pacific and Rest of World for Years 2015, 2025 & 2030
- TABLE 8: World Recent Past, Current & Future Analysis for Fund Companies by Geographic Region - USA, Canada, Japan, China, Europe, Asia-Pacific and Rest of World Markets - Independent Analysis of Annual Sales in US$ Million for Years 2024 through 2030 and % CAGR
- TABLE 9: World Historic Review for Fund Companies by Geographic Region - USA, Canada, Japan, China, Europe, Asia-Pacific and Rest of World Markets - Independent Analysis of Annual Sales in US$ Million for Years 2015 through 2023 and % CAGR
- TABLE 10: World 15-Year Perspective for Fund Companies by Geographic Region - Percentage Breakdown of Value Sales for USA, Canada, Japan, China, Europe, Asia-Pacific and Rest of World for Years 2015, 2025 & 2030
- TABLE 11: World Recent Past, Current & Future Analysis for Other Institution Types by Geographic Region - USA, Canada, Japan, China, Europe, Asia-Pacific and Rest of World Markets - Independent Analysis of Annual Sales in US$ Million for Years 2024 through 2030 and % CAGR
- TABLE 12: World Historic Review for Other Institution Types by Geographic Region - USA, Canada, Japan, China, Europe, Asia-Pacific and Rest of World Markets - Independent Analysis of Annual Sales in US$ Million for Years 2015 through 2023 and % CAGR
- TABLE 13: World 15-Year Perspective for Other Institution Types by Geographic Region - Percentage Breakdown of Value Sales for USA, Canada, Japan, China, Europe, Asia-Pacific and Rest of World for Years 2015, 2025 & 2030

III. MARKET ANALYSIS

UNITED STATES
- Collateralized Debt Obligations (CDOs) Market Presence - Strong/Active/Niche/Trivial - Key Competitors in the United States for 2025 (E)
- TABLE 14: USA Recent Past, Current & Future Analysis for Collateralized Debt Obligations (CDOs) by Institution Type - Asset Management Companies, Fund Companies and Other Institution Types - Independent Analysis of Annual Sales in US$ Million for the Years 2024 through 2030 and % CAGR
- TABLE 15: USA Historic Review for Collateralized Debt Obligations (CDOs) by Institution Type - Asset Management Companies, Fund Companies and Other Institution Types Markets - Independent Analysis of Annual Sales in US$ Million for Years 2015 through 2023 and % CAGR
- TABLE 16: USA 15-Year Perspective for Collateralized Debt Obligations (CDOs) by Institution Type - Percentage Breakdown of Value Sales for Asset Management Companies, Fund Companies and Other Institution Types for the Years 2015, 2025 & 2030
CANADA
- TABLE 17: Canada Recent Past, Current & Future Analysis for Collateralized Debt Obligations (CDOs) by Institution Type - Asset Management Companies, Fund Companies and Other Institution Types - Independent Analysis of Annual Sales in US$ Million for the Years 2024 through 2030 and % CAGR
- TABLE 18: Canada Historic Review for Collateralized Debt Obligations (CDOs) by Institution Type - Asset Management Companies, Fund Companies and Other Institution Types Markets - Independent Analysis of Annual Sales in US$ Million for Years 2015 through 2023 and % CAGR
- TABLE 19: Canada 15-Year Perspective for Collateralized Debt Obligations (CDOs) by Institution Type - Percentage Breakdown of Value Sales for Asset Management Companies, Fund Companies and Other Institution Types for the Years 2015, 2025 & 2030
JAPAN
- Collateralized Debt Obligations (CDOs) Market Presence - Strong/Active/Niche/Trivial - Key Competitors in Japan for 2025 (E)
- TABLE 20: Japan Recent Past, Current & Future Analysis for Collateralized Debt Obligations (CDOs) by Institution Type - Asset Management Companies, Fund Companies and Other Institution Types - Independent Analysis of Annual Sales in US$ Million for the Years 2024 through 2030 and % CAGR
- TABLE 21: Japan Historic Review for Collateralized Debt Obligations (CDOs) by Institution Type - Asset Management Companies, Fund Companies and Other Institution Types Markets - Independent Analysis of Annual Sales in US$ Million for Years 2015 through 2023 and % CAGR
- TABLE 22: Japan 15-Year Perspective for Collateralized Debt Obligations (CDOs) by Institution Type - Percentage Breakdown of Value Sales for Asset Management Companies, Fund Companies and Other Institution Types for the Years 2015, 2025 & 2030
CHINA
- Collateralized Debt Obligations (CDOs) Market Presence - Strong/Active/Niche/Trivial - Key Competitors in China for 2025 (E)
- TABLE 23: China Recent Past, Current & Future Analysis for Collateralized Debt Obligations (CDOs) by Institution Type - Asset Management Companies, Fund Companies and Other Institution Types - Independent Analysis of Annual Sales in US$ Million for the Years 2024 through 2030 and % CAGR
- TABLE 24: China Historic Review for Collateralized Debt Obligations (CDOs) by Institution Type - Asset Management Companies, Fund Companies and Other Institution Types Markets - Independent Analysis of Annual Sales in US$ Million for Years 2015 through 2023 and % CAGR
- TABLE 25: China 15-Year Perspective for Collateralized Debt Obligations (CDOs) by Institution Type - Percentage Breakdown of Value Sales for Asset Management Companies, Fund Companies and Other Institution Types for the Years 2015, 2025 & 2030
EUROPE
- Collateralized Debt Obligations (CDOs) Market Presence - Strong/Active/Niche/Trivial - Key Competitors in Europe for 2025 (E)
- TABLE 26: Europe Recent Past, Current & Future Analysis for Collateralized Debt Obligations (CDOs) by Geographic Region - France, Germany, Italy, UK and Rest of Europe Markets - Independent Analysis of Annual Sales in US$ Million for Years 2024 through 2030 and % CAGR
- TABLE 27: Europe Historic Review for Collateralized Debt Obligations (CDOs) by Geographic Region - France, Germany, Italy, UK and Rest of Europe Markets - Independent Analysis of Annual Sales in US$ Million for Years 2015 through 2023 and % CAGR
- TABLE 28: Europe 15-Year Perspective for Collateralized Debt Obligations (CDOs) by Geographic Region - Percentage Breakdown of Value Sales for France, Germany, Italy, UK and Rest of Europe Markets for Years 2015, 2025 & 2030
- TABLE 29: Europe Recent Past, Current & Future Analysis for Collateralized Debt Obligations (CDOs) by Institution Type - Asset Management Companies, Fund Companies and Other Institution Types - Independent Analysis of Annual Sales in US$ Million for the Years 2024 through 2030 and % CAGR
- TABLE 30: Europe Historic Review for Collateralized Debt Obligations (CDOs) by Institution Type - Asset Management Companies, Fund Companies and Other Institution Types Markets - Independent Analysis of Annual Sales in US$ Million for Years 2015 through 2023 and % CAGR
- TABLE 31: Europe 15-Year Perspective for Collateralized Debt Obligations (CDOs) by Institution Type - Percentage Breakdown of Value Sales for Asset Management Companies, Fund Companies and Other Institution Types for the Years 2015, 2025 & 2030
FRANCE
- Collateralized Debt Obligations (CDOs) Market Presence - Strong/Active/Niche/Trivial - Key Competitors in France for 2025 (E)
- TABLE 32: France Recent Past, Current & Future Analysis for Collateralized Debt Obligations (CDOs) by Institution Type - Asset Management Companies, Fund Companies and Other Institution Types - Independent Analysis of Annual Sales in US$ Million for the Years 2024 through 2030 and % CAGR
- TABLE 33: France Historic Review for Collateralized Debt Obligations (CDOs) by Institution Type - Asset Management Companies, Fund Companies and Other Institution Types Markets - Independent Analysis of Annual Sales in US$ Million for Years 2015 through 2023 and % CAGR
- TABLE 34: France 15-Year Perspective for Collateralized Debt Obligations (CDOs) by Institution Type - Percentage Breakdown of Value Sales for Asset Management Companies, Fund Companies and Other Institution Types for the Years 2015, 2025 & 2030
GERMANY
- Collateralized Debt Obligations (CDOs) Market Presence - Strong/Active/Niche/Trivial - Key Competitors in Germany for 2025 (E)
- TABLE 35: Germany Recent Past, Current & Future Analysis for Collateralized Debt Obligations (CDOs) by Institution Type - Asset Management Companies, Fund Companies and Other Institution Types - Independent Analysis of Annual Sales in US$ Million for the Years 2024 through 2030 and % CAGR
- TABLE 36: Germany Historic Review for Collateralized Debt Obligations (CDOs) by Institution Type - Asset Management Companies, Fund Companies and Other Institution Types Markets - Independent Analysis of Annual Sales in US$ Million for Years 2015 through 2023 and % CAGR
- TABLE 37: Germany 15-Year Perspective for Collateralized Debt Obligations (CDOs) by Institution Type - Percentage Breakdown of Value Sales for Asset Management Companies, Fund Companies and Other Institution Types for the Years 2015, 2025 & 2030
ITALY
- TABLE 38: Italy Recent Past, Current & Future Analysis for Collateralized Debt Obligations (CDOs) by Institution Type - Asset Management Companies, Fund Companies and Other Institution Types - Independent Analysis of Annual Sales in US$ Million for the Years 2024 through 2030 and % CAGR
- TABLE 39: Italy Historic Review for Collateralized Debt Obligations (CDOs) by Institution Type - Asset Management Companies, Fund Companies and Other Institution Types Markets - Independent Analysis of Annual Sales in US$ Million for Years 2015 through 2023 and % CAGR
- TABLE 40: Italy 15-Year Perspective for Collateralized Debt Obligations (CDOs) by Institution Type - Percentage Breakdown of Value Sales for Asset Management Companies, Fund Companies and Other Institution Types for the Years 2015, 2025 & 2030
UNITED KINGDOM
- Collateralized Debt Obligations (CDOs) Market Presence - Strong/Active/Niche/Trivial - Key Competitors in the United Kingdom for 2025 (E)
- TABLE 41: UK Recent Past, Current & Future Analysis for Collateralized Debt Obligations (CDOs) by Institution Type - Asset Management Companies, Fund Companies and Other Institution Types - Independent Analysis of Annual Sales in US$ Million for the Years 2024 through 2030 and % CAGR
- TABLE 42: UK Historic Review for Collateralized Debt Obligations (CDOs) by Institution Type - Asset Management Companies, Fund Companies and Other Institution Types Markets - Independent Analysis of Annual Sales in US$ Million for Years 2015 through 2023 and % CAGR
- TABLE 43: UK 15-Year Perspective for Collateralized Debt Obligations (CDOs) by Institution Type - Percentage Breakdown of Value Sales for Asset Management Companies, Fund Companies and Other Institution Types for the Years 2015, 2025 & 2030
REST OF EUROPE
- TABLE 44: Rest of Europe Recent Past, Current & Future Analysis for Collateralized Debt Obligations (CDOs) by Institution Type - Asset Management Companies, Fund Companies and Other Institution Types - Independent Analysis of Annual Sales in US$ Million for the Years 2024 through 2030 and % CAGR
- TABLE 45: Rest of Europe Historic Review for Collateralized Debt Obligations (CDOs) by Institution Type - Asset Management Companies, Fund Companies and Other Institution Types Markets - Independent Analysis of Annual Sales in US$ Million for Years 2015 through 2023 and % CAGR
- TABLE 46: Rest of Europe 15-Year Perspective for Collateralized Debt Obligations (CDOs) by Institution Type - Percentage Breakdown of Value Sales for Asset Management Companies, Fund Companies and Other Institution Types for the Years 2015, 2025 & 2030
ASIA-PACIFIC
- Collateralized Debt Obligations (CDOs) Market Presence - Strong/Active/Niche/Trivial - Key Competitors in Asia-Pacific for 2025 (E)
- TABLE 47: Asia-Pacific Recent Past, Current & Future Analysis for Collateralized Debt Obligations (CDOs) by Institution Type - Asset Management Companies, Fund Companies and Other Institution Types - Independent Analysis of Annual Sales in US$ Million for the Years 2024 through 2030 and % CAGR
- TABLE 48: Asia-Pacific Historic Review for Collateralized Debt Obligations (CDOs) by Institution Type - Asset Management Companies, Fund Companies and Other Institution Types Markets - Independent Analysis of Annual Sales in US$ Million for Years 2015 through 2023 and % CAGR
- TABLE 49: Asia-Pacific 15-Year Perspective for Collateralized Debt Obligations (CDOs) by Institution Type - Percentage Breakdown of Value Sales for Asset Management Companies, Fund Companies and Other Institution Types for the Years 2015, 2025 & 2030
REST OF WORLD
- TABLE 50: Rest of World Recent Past, Current & Future Analysis for Collateralized Debt Obligations (CDOs) by Institution Type - Asset Management Companies, Fund Companies and Other Institution Types - Independent Analysis of Annual Sales in US$ Million for the Years 2024 through 2030 and % CAGR
- TABLE 51: Rest of World Historic Review for Collateralized Debt Obligations (CDOs) by Institution Type - Asset Management Companies, Fund Companies and Other Institution Types Markets - Independent Analysis of Annual Sales in US$ Million for Years 2015 through 2023 and % CAGR
- TABLE 52: Rest of World 15-Year Perspective for Collateralized Debt Obligations (CDOs) by Institution Type - Percentage Breakdown of Value Sales for Asset Management Companies, Fund Companies and Other Institution Types for the Years 2015, 2025 & 2030