PHOENIX, Ariz. - The remarkable growth in ABS CDOs and its impact on the market was a consistent topic of discussion at the Arizona conferences.

Interestingly, it was only the year prior that those conference panelists, particularly investors, began noting the spread implications of ABS CDOs and how they were rapidly changing the market dynamic. To be sure, ABS CDOs have added a significant bid to the sub bond market, which, in earlier years, was often absorbed by the underwriters. Last year, about 34 ABS CDOs were launched, packaging more than $14 billion worth of sub bonds from the ABS/MBS/CMBS and REIT markets. This is compared to 22 deals for $10 billion in 2000.

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