While CDO firms are starting to revive sales of securities backed by leveraged loans, the market for deals comprising mortgage and other asset-backed debt has been closed since 2007. Sales of the securities totaled more than $144 billion last year, according to JPMorgan Chase & Co. data.

``We don't see any revival for CDOs backed by asset-backed debt,'' said Natcharian. ``We do expect to see CLOs come back, although investors will be much more discriminating.''

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