As if the new consolidation guidelines weren't dampening enough to CDOs, the Financial Accounting Standards Board will release Statement No. 149 this month, which is expected to eliminate the favorable treatment banks receive for their trust preferred securities, among other things.

This could take a significant bite out of the future supply pool for trust preferred deals, as banks might choose other means of raising capital. Several investment banks have developed platforms for these CDOs, anticipating supply.

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.