Eight key players involved in European CDOs recently gathered to talk about the impact of this summer's liquidity crisis and how the CDO and wider securitisation markets are likely to change. The consensus was that the demand/supply imbalance will eventually find a new equilibrium but banks will have to write down the overhang of underwater loan assets before a meaningful recovery can get underway. Given institutions are holding tens of billions of stranded leverage loans, assessing warehouse risk, which was previously not such a priority, will...Read more