When the subprime RMBS and HEL markets began to fall apart, the market watched as billions in mezzanine CDO liquidations routed spreads, undermined investor confidence and siphoned liquidity from the securitization markets.

Another major wave of CDO liquidations is set to hit the market this week, when at least $2.8 billion of high-grade CDO transactions referenced to auto, credit card and even airplane ABS are set to liquidate because they will have hit their events of default. The total amount of assets to be liquidated is much greater than that, according to market sources.

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