Collateralised debt obligations (CDOs) using hedge fund of funds' secured debt will be the next "hot" sector in the fast-growing alternative investment industry, according to Standard & Poor's (S&P), the ratings agency.
S&P said last week that the $500bn (€546bn) hedge fund industry, which is seeing the largest inflows of cash in its history, will drive a new breed of CDOs, or debt issues that transfer the risk of a pool of assets to the marketplace.
