The North America Collateralized Debt Obligation Market is expected to witness market growth of 10.6% CAGR during the forecast period (2024-2031).
The US market dominated the North America Collateralized Debt Obligation Market by Country in 2023, and is expected to continue to be a dominant market till 2031; thereby, achieving a market value of USD20.88 billion by 2031. The Canada market is experiencing a CAGR of 13% during 2024-2031. Additionally, the Mexico market would exhibit a CAGR of 12.1% during 2024-2031.
Collateralized debt obligations serve several important applications in the financial markets. They are primarily used for risk diversification, providing investors with exposure to a wide range of underlying assets while spreading risk across multiple debt instruments.
Additionally, creating different tranches allows investors to choose their preferred risk-return profile, which is particularly beneficial for institutional investors looking to manage their portfolios.
The dynamics of foreign financial assets and liabilities in the United States are crucial for understanding the potential growth of the collateralized debt obligation market. According to the Bureau of Economic Analysis, as of the end of the second quarter of 2024, the U.S. had a net investment position of -USD22.52 trillion, indicating a substantial imbalance between foreign assets and liabilities. With total foreign assets amounting to USD36.00 trillion and liabilities reaching USD58.52 trillion, this situation reflects significant external obligations that could drive demand for structured financial products such as CDOs.
The US market dominated the North America Collateralized Debt Obligation Market by Country in 2023, and is expected to continue to be a dominant market till 2031; thereby, achieving a market value of USD20.88 billion by 2031. The Canada market is experiencing a CAGR of 13% during 2024-2031. Additionally, the Mexico market would exhibit a CAGR of 12.1% during 2024-2031.
Collateralized debt obligations serve several important applications in the financial markets. They are primarily used for risk diversification, providing investors with exposure to a wide range of underlying assets while spreading risk across multiple debt instruments.
Additionally, creating different tranches allows investors to choose their preferred risk-return profile, which is particularly beneficial for institutional investors looking to manage their portfolios.
The dynamics of foreign financial assets and liabilities in the United States are crucial for understanding the potential growth of the collateralized debt obligation market. According to the Bureau of Economic Analysis, as of the end of the second quarter of 2024, the U.S. had a net investment position of -USD22.52 trillion, indicating a substantial imbalance between foreign assets and liabilities. With total foreign assets amounting to USD36.00 trillion and liabilities reaching USD58.52 trillion, this situation reflects significant external obligations that could drive demand for structured financial products such as CDOs.
List of Key Companies Profiled
- Citigroup Inc.
- UBS AG (UBS Group AG)
- The Bank of America Corporation
- Wells Fargo & Company
- Deutsche Bank AG
- JPMorgan Chase & Co.
- Morgan Stanley & Co. LLC
- Royal Bank of Canada
- Barclays PLC
- Goldman Sachs & Co. LLC
Market Report Segmentation
By Type
- Collateralized Loan Obligations (CLOs)
- Collateralized Bond Obligations (CBOs)
- Collateralized Synthetic Obligations (CSOs)
- Structured Finance CDOs (SFCDOs)
By Application
- Asset Management Companies
- Fund Companies
- Other Applications
By Country
- US
- Canada
- Mexico
- Rest of North America
Table of Contents
Chapter 1. Market Scope & Methodology
Chapter 2. Market at a Glance
Chapter 3. Market Overview
Chapter 5. North America Collateralized Debt Obligation Market by Type
Chapter 6. North America Collateralized Debt Obligation Market by Application
Chapter 7. North America Collateralized Debt Obligation Market by Country
Chapter 8. Company Profiles
Companies Mentioned
Some of the key companies in the North America Collateralized Debt Obligation Market include:- Citigroup Inc.
- UBS AG (UBS Group AG)
- The Bank of America Corporation
- Wells Fargo & Company
- Deutsche Bank AG
- JPMorgan Chase & Co.
- Morgan Stanley & Co. LLC
- Royal Bank of Canada
- Barclays PLC
- Goldman Sachs & Co. LLC
Methodology
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