CDOs of ABSs "in deep trouble"
Ninety-eight collateralised debt obligations of asset-backed securities (CDOs of ABSs) rated by New York-based Standard and Poor’s (S&P) have reached so-called events of default (EODs).
“Nearly all CDOs of ABSs originated in 2006 and 2007 are in deep trouble,” said Ratul Roy, head of structured credit strategy at Citi in New York. Continual tranche downgrades among mezzanine CDOs of ABSs, he added, were in turn putting more high-grade CDOs of ABSs at risk.
High-grade deals, by
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