CDS report: “Horrible” fall-out scenario preoccupies market

``Trade was thin in Europe, but spreads did not recede far from the record wides reached on Friday, when again the talk was that structured products – synthetic CDOs or CPDOs – were being liquidated. “If these things do get unwound en masse, the effect on the market will be horrible,” said credit strategist Barnaby Martin at Merrill Lynch. “Between 1 and 2 trillion dollars of synthetic CDOs have been issued over the last four years. Any unwinding will likely be crammed into a much shorter time period.”''