Housing Market Worries Unsettling CDO Bonanza

O'Connor, Colleen Marie
January 2006
Investment Dealers' Digest;1/23/2006, Vol. 72 Issue 3, p11
Trade Publication
The article reports on the increase in the issuance of collateralized debt obligations (CDO) backed by mortgage and home equity loan-backed securities. Concerns about the state of the housing market have instigated spreads among structured finance CDOs to soften recently. CDOs backed by asset-backed bonds are among the fastest-growing subset in the market and a good chunk of that is real estate CDOs. Secondary CDO traders at two different dealers report an increase in calls from investors asking if they see signs of loss in deals backed by residential mortgage loans.


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