As the mid-year point rapidly approaches, CDO professionals are not looking forward to the relaxed pace of a summertime market. After all, new issuance slowed early on this year. Market mavens are doing all they can to keep investors from singing the summertime blues and from sliding too deeply into secondary market activity.
Taking into account the current pipeline and recent new issues, it is clear firms are focused on selling structured product CDOs. The last three most recent U.S. market pricings were CDOs comprised mainly of asset-backed securities. Lubeck CDO Ltd., Callidus Debt Partners and Trapeza CDO LLC all issued ABS CDOs in June. Reportedly, CDO Repackaging Trust also issued an ABS CDO last week.