S&P is rating an average of one CDO backed by credit- defaults swaps in Asia, outside of Japan and Australia, every two weeks, Allan Redimerio, associate director of structured finance ratings said.
Previously, it was rating two synthetic CDOs a week on average, and as many as four, he said.
There is definitely a slowdown, Redimerio said in an interview in Singapore.
A lot of the investors in CDOs in Asia are banks and insurance companies and they are sitting on the fence right now.'' Sales of CDOs, once the fastest-growing part of the debt market, fell to the least in more than a year in August as investors worried about losses on US home loans in the underlying collateral pools.
Defaults on subprime mortgages, loans to home buyers with poor credit records, led to credit rating cuts on 316 CDO bonds in August compared with 54 upgrades, according to a September 5 report by Morgan Stanley.