Several factors have led to the significant increase in CDO issuance, including the relatively strong corporate performance and a large supply of loans, along with the increasing size of the investor base and the flexibility provided by synthetic structures. This statement was just made by the Bond Market Association today in conjunction with issuance of its quarterly global collateralized debt obligation (CDO) issuance data.

Global CDO issuance through 3Q06, at $322 billion, has exceeded full year 2005 issuance by 20%. Issuance in 3Q06, at $117.8 billion, also been more than issuance in the third quarter of 2006 by 30%.

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