Flexible product set to flourish again
The subprime mortgage crisis hit structured credit very hard, but in this highly specialised field, deals are still being done. Some structures have fared well, and most market participants are highly adaptable. As Tessa Wilkie reports, synthetics will be in pole position in 2008, along with simpler cash structures.
European structured credit was in the middle of an unprecedented boom at the beginning of 2007, driven by a surge in deals backed by leveraged loans. Moodys rated 430 European CDOs in the first nine months of the year, compared with 460 in the whole of 2006.
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