BOCA RATON, FLA. - CDO equity investors are asking for larger chunks than ever before, Banc of America Securities Managing Director Dik Blewitt said during a panel discussion at this year's Information Management Network ABS East conference held here last week.

The more equity investors hold, the more they benefit from call options, he said. Call options, particularly in the high-yield corporate bond market, have increased as companies jump to refinance their debt before the window of low rates is shut (see ASR 08/22/05).

Blewitt said he was yelled at recently by investors in an oversubscribed equity deal he was selling and couldn't help but giggle because it had been a long time since he'd been "yelled at for giving out a small piece of equity."

"Selling [CDO] equity these days is a much more pleasant experience," Blewitt added.

(c) 2005 Asset Securitization Report and SourceMedia, Inc. All Rights Reserved.

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