According to Morgan Stanley's latest CDO market update report, the pace of CDO new issuance slowed further in September to $10.4 billion from 13 transactions. New issuance in 2008 amounts to $101.4 billion, a steep decline from the $393 billion total the bank calculates for the same period of 2007. Balance Sheet CLO dominate issuance.
The bank's researchers calculate that 243 ABS CDOs are now under event of default. Of these, 64 have already been liquidated and an additional 18 have received liquidation notices.
November 2008
News: CDS players smell rat after Rentokil private issue; Discount rules halt CLO trading; Morgan Stanley sells CDPC to Magnetar
People: Banks downsize credit prop operations; BNP Paribas reorganises trading; Fast moves
Deals: Investors sniff potential for further triple A CLO widening; Australian investors hope for windfall pay-out
Funds: Big name partners attract funds for structured opportunities strategy; Lehman collapse and loan falls dent returns
Analysis: Lifting the lid on CDO performance; Structured credit outperforms
Profiles: Viewpoint - Jonathan Trutter; Stanfield
Comment: Fishknife, Wolseley
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