In a quarter punctuated by sharply deteriorating subprime mortgage collateral, some CDO underwriters, such as Merrill Lynch, posted substantial gains in year-over-year volume. Meanwhile, others took a noticeable turn in the opposite direction, according to Thomson Financial 1Q07 manager activity rankings.

For some underwriters, the amount of subprime collateral they had sitting in warehouse lines dictated exactly how aggressive they were in marketing deals, sources said last week.

Subscribe Now

Access to a full range of industry content, analysis and expert commentary.

30-Day Free Trial

No credit card required. Access coverage of the securitization marketplace, including breaking news updated throughout the day.