Realigning exposures

Some synthetic securitisations have performed poorly due to turbulent credit markets, but dealers are offering a remedy to concerned investors

While demand for new deals remains healthy, some investors in older synthetic collateralised debt obligations (CDOs) are getting their fingers burnt as defaults eat through tranches. Managed synthetics are expected to eventually predominate and, in theory at least, should allow credits to be ditched before they become a problem. But for those investors saddled with lacklustre tranches from earlier static synthetic CDOs, help is now at hand as dealers offer derivatives solutions to under