The release of standard documentation for trading CDO credit default swaps in early June was a major step toward transforming what has historically been a long-only market - and in the weeks following, the sector seems to be chugging along.

Multiple CDO CDS bid lists have garnered strong participation, according to JPMorgan Securities. There is a generally constant negative basis to cash emerging in trades so far, with triple-B and double-B CDO CDS spreads for protection sellers averaging from 20 to 50 basis points inside cash spreads.

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