Broadening the CDO investor base
CDOs now appeal to a wider range of investors, such as hedge funds which now account for around 30% of CDO holdings. Banks are also keen to 'demystify' the asset class in order to attract more mainstream investors
A key trend in the evolution of the market for CDOs over the last decade has been the progressive expansion and diversification of the investor base. That has been reflected in the explosive growth of demand for CDOs in the primary market, routinely leading to very high levels of oversubscription for new transactions from the top-rated managers.
Take the example of a deal such as Geldilux TS-2005, which was the sixth transaction in a programme originally launched by Germany's HVB in 1999, and
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