Though hailed as a pending hot spot for collateralized bond obligations, the European high-yield market - being so telecom-intensive - faces industry concentration issues that will likely spawn a wave of CBOs backed by a mixture of European and U.S. high-yield assets, analysts said.

"I don't know how long until there's a boost, but there are clearly transactions being done and being contemplated right now," said Lori Evangel, head of the CBO group at MBIA.

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