CDOs/CLOs

Ironing out language-related wrinkles in credit default swap deal documentation along with last month's launch of a new U.S. ABS index means an obscure area of the CDO market may be ready for substantial growth.

LAS VEGAS - Additional CDO volume is expected this year compared with 2005, according to attendees at the ASF 2006 conference held here last week.

LAS VEGAS - After one of the most watched events in the credit card industry unfolded in the last half of 2005 with the implementation of the Bankruptcy Reform Act, credit card ABS performance appears to be holding up well and sources expect spreads to continue to remain tight.

LAS VEGAS - This year's release of tradable indices for asset-backed securities credit default swaps - deemed the wild, wild West of ABS - is not only considered a turning point for the rapidly growing CDS of ABS sector, but is thought to be one of the most, if not the, monumental developments in the market, according to attendees at the ASF 2006 conference held here last week.

Thanks in part to a low default rate, 2005 was a strong year ratings-wise for collateralized bond obligations and collateralized loan obligations, according to a recent report by Standard & Poor's.

LAS VEGAS - The private student loan ABS market is expected to continue its growth in 2006.

The American Securitization Forum is expecting a record 3,600 attendees at its annual conference, ASF 2006, in Las Vegas this week.

UBS is adding to its securitization team worldwide as part of a larger initiative to significantly ramp up its asset-backed activity.

More than $5 billion in tobacco settlement ABS came to the market last year compared with no issuance in 2004. The resurgence of issuance is being fueled by a string of positive litigation rulings and low interest rates, among other factors.

The home equity ABS credit default swap index - called the ABX.HE - is expected by analysts to remain volatile, at least in the near term.