Salomon Smith Barney is pushing ahead with what is expected to be the firm's last CDO underwriting of the year, and Trust Company of the West's first structured finance CDO, called South Coast Funding.

The trade is unofficially talked at 48 basis points plus Libor (7.7-year average life) on the triple-As, from 45 to 48 basis points plus Libor initially. The talk on the double-A and triple-B tranches was unchanged as of press time, but all CDOs remaining in the market are under pressure to widen.

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