CDOs/CLOs

PHOENIX - Amid another volume record in 2004, and seemingly endless demand driving spreads to heretofore unseen levels, more than 3,000 delegates and 143 corporate sponsors gathered yesterday for the opening panel discussion of Information Management Network ABS West 2005 conference held here last week, to discuss the next 12 months in securitization markets. While all agreed that the current market conditions were unprecedented and that fundamentals remain positive, many panelists expressed doubt that this environment was sustainable in the long term.

PHOENIX - At least one panel had a healthy discussion at Information Management Network ABS West 2005 conference held here last week, as participants talked the fairness and efficiency of the allocation process for asset-backed securities. The panel consisted of a mix of sell-side syndicate heads - of which there were six - two issuer representatives and an issuer advisor representative. The question of who syndicate desks are really serving, issuers or investors, ran throughout the discussion.

Issuers and investors have flocked to the second lien loan market over the past year-and-a-half, sparking U.S. second lien volume of at least $12 billion in 2004 alone - the most on record. This heightened popularity of the often yieldy debt product has caused arrangers, especially those in the asset-based middle market area - to source collateral for second lien credits in more creative ways than ever before. One particularly creative method is with intellectual property, which is known as a "soft" source of collateral.

PHOENIX - David Heike, head of ABS research at Lehman Brothers, started off last week's non-mortgage ABS research roundtable by likening the ABS sector to a Starbucks Frappuccino - frothy, steamy and rich.

PHOENIX - With ABS spreads grinding ever tighter and investors showing no signs of getting up from the table, one trader gave his opinion of where investors can satisfy their cravings during a preconference workshop at Information Management Network ABS West 2005 conference held here last week.

PHOENIX - The proliferation of IO mortgage product and adjustable rate mortgages over the past year was fodder for a lively debate about the future performance of such innovations in the mortgage market. Investors at Information Management Network ABS West 2005 conference held here last week, had varied opinions about the severity of the situation, but on the whole, no one seemed overjoyed.

PHOENIX - Delegates lined the walls for a standing room only session dedicated to CDOs, credit derivatives and synthetics at Information Management Network ABS West 2005 conference held here last week.

PHOENIX - Insurance product securitization is leading the pack in new asset classes seen throughout late last year and early this year, noted panelists at last week's Information Management Network ABS West 2005 opening panel discussion.

With the finalized numbers now in, it appears the market for collateralized debt obligations in Japan cooled its heels when it came to new issuance last year.

Year to date as of 02/09 Term (days) 02/03 02/04 02/07 02/08 02/09 1-week