While the CLOs and other bond-related funds have picked up some surprising momentum, the collateralized debt obligation market continues to struggle, the AP notes. The CDOs that are getting priced seem to be selling non-mortgage portfolios. The problem reflects the fact that subprime loan-backed issues had so thoroughly dominated the CDO market that until they recover, the market will remain weak. I have to think that the top banks are not yet of a mind to re-up the warehouse loans that really make this market tick. But if you've got an entrepreneurial bent, you've got to be asking what's next. I am sure the derivatives wizards are as active as ever right now. The next big structured finance opportunity? I only wish I knew. Of course if I did, I'm in the wrong business. Something will come along.  

For more:
- here's the AP article

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