Synthetic and investment grade cash CDOs referenced to corporate names may have taken a slight hit this week, while structured finance CDOs remained stable as investors reacted to the corporate credit downgrades to junk status for Ford Motor Co. and General Motors Corp. by Standard & Poor's.

Most of those deals have about a 1% to 2% exposure on average to the names, according to JPMorgan Securities, and at least $10 billion of GM, GMAC, and Ford is referenced in the synthetic structured credit market. Some downgrades occurred, but it was unclear whether they were due to GM and Ford exposure, and according to JPMorgan, the risk of future downgrades lies with CDOs that have already experienced credit deterioration - giving them less leeway to withstand future credit deterioration, without sacrificing built-in protections.

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