Pay your money, take your chance
2002 was a year of mixed fortunes for investors and issuers in the CDO market, with a slew of downgrades masking several success stories. Mark Pelham discovers whether the ‘lucky dip’ approach to CDO investment will continue this year
By rights, the past year should have been a tough one for collateralised debt obligations (CDOs), but despite record downgrades and horror stories of huge corporate losses, the CDO market did, in fact, grow.
And because of improving credit conditions, the CDO market’s increasing importance and new asset and structural possibilities, bankers have high hopes that 2003 will prove at least as good as last year in terms of new issuance. Even so, as far as investors are concerned, buying CDOs remains a
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