Energized by high demand and synthetic technology - from LCDS to CDO CDS to the ever-popular ABCDS - there was no shortage of notable deals within the U.S. CDO sector in 2006.

A deal that picked up a lot of steam in the latter part of 2006 was the first constant portfolio debt obligation (CPDO) structure, brought to market by ABN Amro. Called Surf, the CDO spin on CPPI helped to revise some of the rating and valuation challenges posed by the constantly changing nature of CPPI (constant proportion portfolio insurance). The majority of deals brought to market last year involved investment grade corporate indices as the underlying asset, although there was talk about a CPDO referencing the ABX.HE index.

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