CDO ETF Anyone?

One of the biggest problems in economy right now: illiquid market for CDOs, collaterized debt obligations. Actually, these are collaterized mortgages. Banks are technically insolvent (at least, many of them) because, according to "mark to market" rules, COOs on their account worth about 20-25 cents per dollar. Banks don't want to sell for this price, they think that fair price is in 60-70 cents per dollar range. But market doesn't agree.

Maybe somebody will create CDO ETF? At 50 cents per dollar it should yield in range 8-10%, there should be a lot of investors willing. At 30 cents per dollar I will probably buy. At least such ETF will increase demand for CDOs, making market more liquid.

I know that idea of CDOs was wrong. Risk was greatly underestimated and AAA rating assigned to most of them isn't even laughable. But they exist, they worth something, why not let individual investors participate in the market?