The original CPDOs issued by ABN Amro (i.e. the very first CPDOs) have now been downgraded to default!! Perhaps noone cares about this but me but for me it's a big thing. These products were marketed as safe instruments with junk bond returns and they made me realize back in 2006 just how bad this credit crisis would be! If these (presumably very sofisticated) investors were this naive, whatabout all those local bank officials searching for yield?
I never thought they (the ABN Amro CPDOs) would hang on this long, but now the saga seems to have come to an end.....
