Like a cup of hot cocoa clasped in the hand, market talk is warming up to value found in synthetic multi-sector CBOs.

When compared to their cash counterparts, synthetic MS CBO investors stand to benefit from a spread pick-up. Market sources believe the pick-up in triple-As to be as much as 15 basis points; 20 basis points for double-As; and as much as 60 basis points in single-As.

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