In their quest to identify attractive relative value and wide yield spreads in the asset-backed securities market, investors at Fort Wayne, Ind.-based Lincoln Investment Management Inc. have zeroed in on both an asset class and a marketing environment that works exceptionally well for their portfolio: collateralized bond obligations in a private placement-style setting.

"We absolutely see more attractive returns and value in the subordinated tranches of CBOs (collateralized bond obligations) and collateralized loan obligations (CLOs), as well as in emerging asset classes such as mutual fund fee securitizations," said Steven Staggs, vice president for private domestic structured finance at Lincoln. "Moreover, we're looking for deals where we can add value by performing private placement-style due diligence."

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