White Sulphur Springs, W. Va.-A surprise mention of the collateralized debt obligation sector by Federal Reserve Chairman Alan Greenspan could spur more interest in the already burgeoning market, as well as inspire underwriters to create an elite class of top-rated CDOs as a possible benchmark alternative to Treasury bonds.

Greenspan, speaking via satellite at the end of April to the Bond Market Association's annual convention at the Greenbrier Hotel here, spoke on the pressing need to find bond market pricing alternatives to the dwindling Treasury market. He mentioned swaps, Ginnie Maes (see story below) and, most intriguingly, a high-grade CDO as worthy candidates of the Treasury market's replacement.

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