CDOs/CLOs

The International Swaps and Derivatives Association (ISDA) is still looking for a council of experts that could help mitigate disagreements between credit default swap counterparties about what constitutes a deliverable obligation.

As evidenced by the growing CDS of CDO market, investors are becoming increasingly bearish on not only subprime mortgages issued in 2005 and 2006, but also on the CDOs that are buying the bonds backed by them. While rating agency sources say the first downgrades to these CDOs shouldn't be expected for several years, investors are expected to begin asking for more risk compensation before they buy the lower rated notes.

Securitization professionals spent most of last week networking at Information Management Network's ABS East conference, virtually silencing their trading floors at home offices. Out of an expected $14 billion in issuance, less than $300 million in deals priced by press time.

City night life, beaches - and oh, yes, cutting edge securitization business - await delegates at Information Management Network's upcoming inaugural Spring ABS 2007 in South Beach, Florida. Commencing on April 29 and running for four days, the spring conference will focus on pressing issues facing investors and issuers.

Orlando, Fla - Practices for assembling and implementing quality control on home equity loan pools are shifting dramatically on Wall Street, putting more onus on investors - and dealers sometimes - to do more due diligence on the ABS pools that they are interested in buying.

Orlando, Fla. - If the Starbucks coffee didn't wake up delegates who attended the early morning economist roundtable at Information Management Network's ABS East conference held here last week, then the lively interaction between panelists and their optimistic economic outlooks certainly did.

Orlando, Fla.- ABS analysts, traders and deal managers at Information Management Network's ABS East conference held here last week got into deep discussions about complex deal structures, regulatory issues and industry moving trends. But delegates for the session on first-time issuers got a thorough introduction to the workings of the asset securitization market, and what issues lay ahead as they tap the specialized form of financing.

Orlando, Fla. - Regulation AB was obviously the talk of the town at the Information Management Network ABS East conference held here last week. Delegates were swarming to the sessions to catch up on the latest developments. To demonstrate demand, for the Sunday sessions alone, three panels were devoted exclusively to the subject matter.

Orlando, Fla. - Issuers who want to bring new or esoteric asset classes to market should consult with rating agencies early on in the process, according to participants at the twelfth annual Information Management Network ABS East conference held here last week. These points were made at the panel entitled Bringing New Asset Types to Market: Challenges and Potential, Pitfalls for New Issuers'.

Orlando, Fla. - Although the participants at the opening panel of IMN's conference were generally predicting a dip in ABS volume for 2007 - from 5% to 10% - they said that derivative product will drive issuance going forward.