Grasping the brass ring of stable performance these days is as highly sought after as a World Series ring around Boston these days. But while no asset class is ever risk-free, the CBO market has been drawing a flock of investors in phenomenal numbers.

Lang Gibson, director of structured credit research at Banc of America Securities, says the movement is largely the result of stable performance of the collateral. According to Gibson, the multisector CBO market has become the single largest cash CDO subsector in the past few years. Also, subprime RMBS has seen exceptionally high issuance levels due to historically low interest rates and a healthy housing market.

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