US appetite for CDOs increases
US demand for structured credit products is growing among institutional investors as the corporate bond market continues to disappoint due to a lack of issuance.
A director in structured credit research at a New York-based investment bank notes that real-money accounts in the US are again increasing their exposure to asset collateralised debt obligations (CDOs), after almost a three-year hiatus. “Cash CDO spreads have been tightening and the spread pick-up investors can get is more profitable
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