The European market has enjoyed a rather robust year of CDOs thus far, and can expect a similar amount of issuance through the rest of the year, a report issued by Moody's Investors Service said.

High-yield CDOs have not been a great part of the market as synthetics, particularly balance sheet CDOs, have made up nearly 92% of the issuance in the first half of the year. "Synthetics have exhibited such strength during the first half of the year that it is difficult to imagine that their dominance will not continue into the rest of the year," the report said. "Indeed, the existing pipeline is full of synthetic CDOs, thus strengthening these expectations."

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