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Moody's Investors Service has revised its methodology on emerging market CDOs to reflect a more evolved view toward diversification in these countries.
"There is greater confidence in the ability to diversify in emerging markets; previously, people were very skeptical of that assertion," said Moody's senior credit officer Laurence Freed.
The new method takes a different approach to a CDO's diversity score, thereby giving investors a more nuanced measure, Freed wrote in a report. The role of the private sector has grown dramatically, he noted, and there are now...