NEW YORK - Investors, emphasizing the separation between credit and structured finance markets, reiterated that the Ford Motor Credit Co. and General Motors Co. corporate credit downgrades are a non-issue in the cash CDO market. In fact, some portfolio managers are loading up on Ford and GM securities now - effectively increasing their exposure - in order to benefit from the wide spreads and low prices.

"The good news is, for cash flow CDOs, exposure to GM and Ford has been very, very low," said Matt Natcharian, investment director at David L. Babson & Co. "What's interesting is that exposures are increasing - a lot of managers are adding that risk to their portfolios - we are seeing exposure going up over the last month," he said.

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