While some CDO issuers have packed up and left the home equity loan space amid worsening credit performance, others say they plan to stay put. Perhaps the difference between the two camps depends on where, exactly, in the HEL space they've been camping out in recent months.

Those stuck in the equivalent of the Lower Ninth Ward of subprime mortgages - during the storm of borrower delinquencies and originator bankruptcies - may not be as keen on subprime as those that were perched on a higher spot. But to the subprime bulls out there, fleeing to another credit sector would be a mistake. Their reasoning: While the sector may have weakened, the storm, following years of easy credit, has yet to hit such sectors as commercial real estate and leveraged loans.

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