In 2001, in the face of a slowing economy, the tragic events on Sept. 11 and the Enron Corp. debacle, not to mention a wave of downgrades, the relatively new CDO sector continued forging ahead as a new structured credit product in the fixed income market. While this year's deal volume is down from 2000, triple-A spreads held firm. The credit curve steepened as mezzanine spreads widened in response to economic and event risks. The secondary market advanced as transparency improved with increased surveillance by dealers and rating agencies alike. Consequently, we see the CDO market continuing on a steady path for 2002, with innovation and transparency leading the way. That said, we present the year in review and some thoughts for 2002.

2001 Issuance: Down

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