(Reuters) - Only $3 billion of new high-grade CDOs were marketed to
investors in the latest week, down dramatically from just one
month ago when the pipeline stood at over $20 billion,
according to J.P. Morgan Securities Inc. Since that time, $18
billion of those CDOs have priced, the firm added.
Foreign investors have been the dominant buyers of these
exotic debt instruments in recent years, owing to their
insatiable demand for yield. A change in foreign taste would be
disruptive across many asset classes since this pooling of debt
assets, including subprime mortgages, have resulted in a
tremendous compression of yield spreads.
Read more at Reuters.com Bonds News
investors in the latest week, down dramatically from just one
month ago when the pipeline stood at over $20 billion,
according to J.P. Morgan Securities Inc. Since that time, $18
billion of those CDOs have priced, the firm added.
Foreign investors have been the dominant buyers of these
exotic debt instruments in recent years, owing to their
insatiable demand for yield. A change in foreign taste would be
disruptive across many asset classes since this pooling of debt
assets, including subprime mortgages, have resulted in a
tremendous compression of yield spreads.
Read more at Reuters.com Bonds News
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