CDOs/CLOs

Securitization Focus

When the European Central Bank (ECB) unveiled its €750 billion ($952 billion) bailout package to help stabilize the euro against the U.S. dollar, it addressed the crisis of confi dence created by fears of contagion over Greece’s sovereign risk.

Elgin Capital, a London-based asset manager, will start purchasing debtor-in-possession loans backing U.S.-based companies for its CLOs.

The tranches in the $325 million ALM Loan Funding 2010-1 LTD CLO — arranged by Citigroup and managed by Apollo Management — have been priced, a source familiar with the situation said.

Published reports indicated that some of the banks and credit rating agencies that were subpoenaed by New York Attorney General Andrew Cuomo are willing to cooperate with his investigation. Cuomo's probe is looking into the propriety of these firms' relationships.

Churchill Financial announced that Olympus Partners, a Stamford, CT-based private equity firm, has bought the asset management firm.

A new report issued by the National Credit Union Administration (NCUA) on last year's failure of Eastern Financial Florida Credit Union (EFFCU) found that the one-time high-flying CU was brought down by risky investments in CDOs as well as loan losses and other concerns.

Large private-equity firms are buying up CLOs to generate higher returns for their investors, and the purchases have helped resuscitate a market that was in severe distress just a year ago.

Two weeks after the Securities and Exchange Commission (SEC) leveled fraud charges against Goldman Sachs, the financial giant is said to be mulling settlement talks with the regulator, according to Fox Business Network.

The Securities and Exchange Commission's (SEC) suit against Goldman Sachs centers on the allegation that the Wall Street firm failed to disclose to investors the role an opportunistic hedge fund, Paulson & Co., played in choosing the assets underlying a CDO, before betting against it.