Trade Matrix: JP Morgan -- CDOs

CDO spreads, which typically lag collateral markets, have only begun to participate in the dramatic corporate credit rally of the last several months. JPMorgan strongly emphasizes that as this disconnect between the CDO and corporate markets continues, relative value for CDOs appears good to excellent. Analysts expect that over the coming weeks and months, CDO liabilities will tighten relative to corporates to reflect spreads in the underlyingcollateral markets.