ACA Sells Off CDO Businesses

ACA Financial Guaranty Corp., a subsidiary of ACA Capital Holdings, announced that it has entered into a letter of intent with FSI Capital, to sell its U.S. ABS and Corporate Credit CDO asset management business. FSI Capital, through its affiliates and subsidiaries, manages 17 CDOs totaling approximately $7.5 billion. ACA also announced that it will sell its U.S. CLO asset management business to Resource Financial Fund Management, a wholly-owned subsidiary of Resource America, and the parent company of Apidos Capital Management. Apidos Capital Management has closed 8 CLOs with approximately $2.8 billion of assets under management.