Collateralized debt obligations made up of 100% synthetic asset-backed securities are expected by many to be the next big thing. These deals are already starting to be structured, and some officials said hybrid deals are just transitional.
Alexander Rekeda, v.p. at Calyon, said he expects to see a complete transfer to 100% synthetic deals on the lower part of the capital structure within the next year. "It is more efficient and easier to structure," he said.
