The future for CDOs: An end to complexity?

12. The outlook

Highly negative press coverage and the appearance of a number of obituaries for some of the more sophisticated and innovative structured finance instruments in 2007 and early 2008 did not appear to form the basis for a very bright future for CDOs. As Lehman Brothers put it: "A cloud of uncertainty continues to hang over the structured credit market (and) many investors are asking not 'when' but 'whether' the CDO market will normalise."

Even amid the wreckage of late 2007, however, CDOs in their b

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