Some hedge funds see gold in synthetic CDO market
We've noted the problems in the synethic CDO market, as hedge funds were forced to unwind some contracts. Now, something of a buying spree has emerged as other hedge funds focus on "equity." The "equity" in a CDO is the residual cash flow left after the rated bonds have been paid off, according to Investment Dealers' Digest. So rock bottom prices in the form of reduced "up front" payments are providing some market support. Some funds may be continuing to unwind positions, however.
> The Investment Dealers' Digest article. (exclusively for FierceFinance readers)
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