Bear Stearns analysts last week refuted claims that the current turmoil in the subprime mortgage market would result in ABS CDO blowups similar to those experienced years ago from losses on manufactured housing loans and high yield bonds.

Past defaults in both the manufactured housing and high yield bond sectors were more systemic in nature, and CDO structural features are currently in place to protect against collateral defaults more effectively than in the past, Bear analysts argued.

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