NEW YORK, Feb. 12 /PRNewswire/ -- Global funded cash flow CDO volume
totaled $59.97 billion in 2001 (excluding unfunded and funded portions of
synthetic structures), up from $48.8 billion in 2000. "Global CDO investment
and issuance activity remains robust, notwithstanding persistent corporate
credit deterioration and a drop in recovery levels," said David Tesher,
managing director in the cash flow CDO group at Standard & Poor's. "The CDO
asset class continues to be tested by the current economic climate."
Standard & Poor's has released a commentary detailing global CDO issuance
and the negative credit cycle's impact on the asset class. The article,
entitled "CDO Resiliency: Negative Credit Cycle Puts the Product to the Test,"
also offers a brief outlook of what 2002 may present for this evolved, more
liquid asset class with credit-exposure sensitive investors.
In addition to outlining 2001 funded and unfunded CDO volume in several
existing and new product sectors, the article examines how outstanding
transactions are performing given underlying collateral performance. The
article also details market developments, and includes lists of CDO rating
actions through February 2002, as well as those transactions that are
currently on CreditWatch with negative implications.
Leverage loan market performance, record corporate defaults, and European
expansion are examined, as are the realities of CBO/CLO ratings volatility.
"CDO Resiliency: Negative Credit Cycle Puts the Product to the Test" is
available on RatingsDirect, Standard & Poor's Web-based credit analysis
system. The commentary can also be found on Standard & Poor's Web site at
http://www.standardandpoors.com. Go to Forum, select Structured Finance and
under Ratings commentary, select the article under Collateralized
Obligations/Derivatives Ratings.
SOURCE Standard & Poor's
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Related links:
http://www.standardandpoors.com/ratings
CONTACT:
David Tesher of Standard & Poor's,
+1-212-438-2618
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