CDO Investors Grapple To Stave Off Liquidation

14 Mar 2008

Some investors in collateralized debt obligations facing potential events of default are battling to gain control of the deals to stave off liquidation.

--Aaron Johnson

Some investors in collateralized debt obligations facing potential events of default are battling to gain control of the deals to stave off liquidation. “They’re finding the cost of buying out the junior bonds outweighs the cost of just selling [in a liquidation],” said one structured finance lawyer.

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