Growing sophistication of the market

$ in billions

• Growing sophistication has led to new types of structured finance vehicles…such as the CDO / CDS market

  • Dramatic growth since 2001
  • Wave of innovation which includes synthetic structures, credit default swaps, and CDOs squared
  • Rising investor acceptance reflects search for stability and extra yield

• Since these transactions have high levels of complexity, issuers and investors value ratings

Source: Harrison Scott Publications / Standard & Poor’s. Does not include confidential and SIV transactions

’99-’04 CAGR = 19.4%

YOY % Change:90.8%

CDO Issuance

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