New products and varieties on existing CDO themes are consistently being presented to investors in the market. This is in response to a combination of growing investor sophistication, the ongoing demand for a pick-up in yield and rising liquidity levels in the asset classes providing CDOs' collateral.
CDOs of asset-backed securities
Take, as an example, the collateral provided for CDO managers by the rapidly expanding market for asset-backed securities (ABS). According to the European Securiti