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The future for CDOs: An end to complexity?

Opaque, complex structures such as CDOs-squared are out of favour, however there is a future for other, simpler structures

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

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