Once considered a foray into the capital markets frontier, European CDOs of ABS have quickly become fortresses of safety, promising to add some of the needed cushioning investors have sought. CDOs of ABS have grown to represent at least 20% of the European market, and sources predict that the market could grow to represent 50% of CDO issuance volume by the end of the year.

"The market is very active this year," said Paul Mazataud at Moody's Investor Services. "And though it's still too early to quote any exact figures, we anticipate to see volumes reach higher levels than last year."

Subscribe Now

Access to a full range of industry content, analysis and expert commentary.

30-Day Free Trial

No credit card required. Access coverage of the securitization marketplace, including breaking news updated throughout the day.