More trust preferred securities-backed CDOs are expected to come to the market this year - with the number of rated deals topping $30 billion this month. Furthermore, these upcoming transactions are expected to contain a wider range of assets compared to older deals.

Market participants are expecting the deals to trend toward hybrid structures, which primarily include bank TRUPS, with smaller buckets for both REIT and insurance TRUPS. And even though CDOs backed by real estate investment trust TRUPS and subordinated debt are among the newest structures to hit the market, the overall size of the REIT market is not expected to support a boom in that sector.

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