Like their high-yield arbitrage counterparts, synthetic collateralized debt obligations have suffered an increasing number of credit events and downgrades in the past few months, due in part to the deteriorating corporate credit environment.

Although the most publicized of the downgraded deals were those with exposure to the California utilities (the Bistro deals), at least one analyst predicts that the market is not out of the woods yet.

Subscribe Now

Access to a full range of industry content, analysis and expert commentary.

30-Day Free Trial

No credit card required. Access coverage of the securitization marketplace, including breaking news updated throughout the day.