More robust

Collateralised-debt obligation (CDO) issuance jumped above $303 billion last year, the most since almost $500 billion priced in 2007, according to Sifma data. But CDOs are different now; for one thing, postcrisis transactions are typically tied to corporate credit rather than mortgage debt. While the resurgence of complex credit-derivative products, such as synthetic CDOs, has raised a few eyebrows, the structures are more robust and include additional safeguards for investors.