CDO spreads are tight and a shortage of new issuance supply has helped drive investors into the secondary CDO market over the past year. But, according to market sources, a confluence of other events has helped spur that activity as well.

"We're in a more mature growth of the CDO market, but the most important thing that has changed is more transition to the secondary market. Investors are receiving better value and that's a very big plus," said David Tesher, a managing director at Standard & Poor's, speaking to attendees at last week's CDO conference hosted by the Information Management Network.

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