A collateralized debt obligations is a structured finance product backed by a pool of bonds, loans or other collateral. Collateralized debt obligations are attractive investments to many hedge funds, mutual funds, pension funds, insurance companies and other investors because they offer relatively attractive yields and provide highly customized risk and return characteristics. According to the Bond Market Association, global collateralized debt obligation issuances increased from $157 billion in 2004 to $249 billion in 2005. Issuances in the first half of 2006 topped $177 billion.
As part of its expansion, Wilmington Trust has formed a new subsidiary, Wilmington Trust Conduit Services, LLC, through which it will conduct most of its collateralized debt obligation services business.
The company has hired a team of recognized capital markets experts to lead the business, including Peter Vinella and Jeanette Jin.
