After the storm

Since the turn of the year instability in the structured credit market has intensified as negative news buffets all asset classes. Volatility in the credit derivative indices, unwinds of mezzanine collateralised debt obligations, falling secondary loan prices, concerns over leveraged super-senior tranches and highly levered instruments such as constant proportion debt obligations have further exacerbated a fragile situation.

Uncertainty over the direction of the major economies and how that will