The market has vanished for asset-backed collateralised debt obligations. But structured finance is not bust. Collateralised loan obligations and CDO-esque products will return to tempt investors.
Speaking at a market briefing by Cadwalader Wickersham & Taft on Monday, lawyers mourned the loss of complex CDOs but predicted the resurrection of CLOs.
"The return of old-style risk analysis will limit multi-layered structures such as the CDO squared, a...