Sensing investor demand for a leveraged product linked to investment-grade collateral, Bank of America's Structured Credit Products Group has developed a new collateralized debt obligation structure called RIGHTs (Referenced Investment Grade Hybrid Transaction).

RIGHTs is an alternative to traditional CDO transactions linked to high yield collateral. Focused on the BBB-sector, the product also differs from other CDOs in that "it is structured to align the investor's interests with BoA's," explains Rick Briggs, the group's global head of trading. What that means is that "in RIGHTs transactions, BoA shares the risks and returns of the structure with the investor."

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