Though there has been some collateralized loan obligations done in Canada (Dominion Bond Rating Service Ltd. figures there are $900 million outstanding), CLO activity has not been significant, and the reception to the product has been somewhat lukewarm.

"Response to the product has been mixed," said Barbara Hooper, managing director of asset securitization at TD Securities. "I know of one bank who is looking at it fairly seriously and another that has said that doing a CLO is not a priority." TD Bank did a CLO in the fall of 1999.

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