Concurrent to the long-term improving credit story in some emerging market regions, the recent blowout in spreads is creating opportunities for cashflow collateralized debt obligations, though a decline in crossover investors will limit the activity, analysts said.

"You can view it as a positive, if you believe in a region and believe in the name: that now with spreads widening, the assets are cheap," said Eileen Murphy, managing director of the global CDO group at Chase Securities.

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