What's behind the demand for CDOs
In the current fixed-income environment, CDOs are able to offer higher yields than similarly rated securities, so bolstering demand
Although the trend of rising demand for CDOs was arrested in the first quarter of 2007, reflecting jitters over the US subprime mortgage market, perhaps the clearest evidence of the success of the longer-term CDO market has been the conspicuous broadening of the investor base over the past five years.
No longer a market dominated by a clique of sophisticated hedge funds, CDOs have evolved into a popular and well-understood instrument among pension funds, insurance companies and even retail
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