Finance experts see end of ABS CDOs, says BIS

FRANKFURT (Reuters) - Financial market experts expect continued weakness for the structured credit market and think the market for asset-backed security collateralised debt obligations (ABS CDOs) could disappear entirely, a report published by the Bank for International Settlements said on Tuesday.

The Joint Forum of international bank supervisors, securities commissions and insurance supervisors -- which is chaired by U.S. Comptroller of Currency John C. Dugan -- presented this view to the March meeting of the Financial Stability Forum, said the BIS.

"The structured credit market is likely to survive, but will remain weak for a period of time," the BIS said in a summary of the Joint Forum's report.

"Their assessment of the prospects for 'multi-layer' securitizations was less optimistic, and a common view was that the market for ABS CDOs would either shrink dramatically or disappear," the BIS said.

The Financial Stability Forum, which is hosted by the BIS and chaired by Bank of Italy chief Mario Draghi, is due to present a report on the recent financial market turmoil later in April.

* For the BIS's summary of the Joint Forum report, see www.bis.org/publ/joint18.htm