Aladdin Capital, a Stamford, Conn.-based boutique collateral manager, is expected to have a warehouse facility in place with the Japanese powerhouse firm, Mizuho Securities by mid-December, buyside sources said. The warehouse facility is said to be in preparation for a $400 million to $500 million arbitrage cashflow high-yield loan CDO, scheduled for a first quarter execution.

Meanwhile, Mizuho is said to be positioning itself as an active player in the U.S. dollar CDO business next year, although most of the senior transactors are based out of London, rating agency sources said.

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