At press time last week only one visible CDO priced, a $400 million arbitrage cashflow CLO for Denali Capital's at +43 basis points over three-month Libor (WAL 7.4-year) via JPMorgan. FSA wrapped the senior notes that had a double-A shadow rating prior to the surety bond.

Relative to the other segments of the credit markets, the senior notes on most CDO deals are coming relatively tight, CLOs are averaging +44 basis points over Libor, according to Credit Suisse First Boston's Market Watch Weekly. However, IFR Asset-Backed Securities notes that CDO sub bonds have been pricing less predictably.

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