Credit crisis tests market infrastructure

29 May 2008

Dozens of CDOs and other structured products face liquidation, triggers are being breached in a range of asset classes and investor classes are squaring off over their rights. Tessa Wilkie finds that the documentation and processes that underpin the market are creaking under the strain.

"Who’s the trustee?" asked investors at a CDO roadshow in May.

It seems like an innocuous question, but it’s one that signals the big change happening in the structured finance trust business.

"First and foremost, I’ve never heard anybody question that, except as a purely informational matter," says ...

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