The use of synthetic exposures in cashflow collateralized debt obligations has recently spiked from next-to-nil one year ago, to as much as 15% of a deal's collateral pool currently, said rating agency sources.

According to analysts at Moody's Investors Service, while the buckets for synthetics are hardly new to the CDO structure, managers, who may not have expertise in synthetic securities, have been more readily using them in the last few months, often at the woo of their bankers.

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