The CDO pipeline is expected to straddle into the first quarter of 2001, bankers say, as well over 55 transactions continue marketing either debt or equity - providing promise for a busy spring. There are 14 visible deals marketing debt tranches, many of which hope to price before month-end, according to IFR Asset-Backed Securities.

If Moody's Investors Service's prediction of 51 CDOs closing before 2001 comes to fruition, spreads on mezzanine tranches are expected to widen significantly. Meanwhile, the flood of deals racing to the year-end finish line may force a seasonal widening to the 50-basis-point area on triple-As, which was seen in December of last year.

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