As I wrote in an earlier entry (Has the turn come to the CPDOs, Dec 16 2007) I think we are going to see a large number of downgrades of CPDOs. In fact, Moody’s has now downgraded a number of additional CPDO deals (Dec 20) and among them are seven deals from the “inventor” of the structure, i.e. ABN Amro. Is it unreasonable to assume large losses for the investors in these deals? I think not!