InnocentsAbroad

AIG: The Mark-to-Lehman Market

Suprised there isn't an ETF that is composed of CDOs. Perhaps American investors are so imitative that the CDOs are considered to be worth nothing at any price. An ETF for the CDOs would provide a vehicle for potential purchasers, and a potential source of liquidities for holders.

A fairly simple proxy would be an ETF composed of the senior debt of ML, Lehman, Goldman, AIG, etc. Or, potentially, a closed end bond fund with that specialty.