With profit taking trades underway in current trading activity, it appears the secondary CDO market has developed into more than a place to shop around a bid list. And in the words of many CDO researchers, 2004 will go down as the year this market maturity but the quest for reliable spread information is just one of the many challenges the secondary market faces as it enters the New Year.

"2004 showed that trading activity in the secondary market was not a one-year phenomenon based on the liquidation of the Abbey National portfolio," said Adam Siegel, managing director, Bear Stearns. "Last year at this time, we were sitting with investors discussing the liquidation of the Abbey National portfolio and people wondered, was this it?'"

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