Second-generation CPDOs hit the market

The constant proportion debt obligation (CPDO) market has taken a step forward with the launch of two second-generation trades. The deals are both managed, building on the first wave of algorithm-based structures.

Lehman Brothers and Pioneer Asset Management were first out of the traps with Ulisse Capital, a EUR135 million 'managed-lite' deal. Like the first generation of CPDOs, Ulisse Capital is based on the iTraxx and CDX credit default swap indices. It differs from previous deals by using

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