The decline in the high yield market this year has in turn slowed the issuance of collateralized debt obligation funds, and even though there are several new CBOs in the pipeline, sources last week cautioned that those funds probably won't make a big impact by themselves.

In the first quarter, there were $17 billion in new junk bonds issued, down from $27.3 billion in the year-ago period, according to Thomson Financial Securities Data. Of that, about $3 billion of new CBO assets came into the market in the first quarter, compared to nearly $50 billion in all of 1999, according to a sell-side analyst.

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