A handful of deals backed by mezzanine CDO tranches are currently in the market, two of which structured with no triple-B or double-B debt classes, typically the most difficult to sell in an a CDO-of-CDO - especially of late, as there seems no end to the downgrades associated with the lower rated tranches and subsequently widening funding costs.

Zais Group's ZING transaction is a whopping $600 million deal via Deutsche Banc. Sources said the trade has a higher quality pool than past CDO-of-CDOs, allowing DB to structure the deal with no debt classes rated below than single-A.

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