Credit Suisse last week ushered in another first-time CDO manager to the market when it closed the $1 billion Harp High Grade CDO I, a high-grade portfolio of RMBS assets to be managed by New York-based Annaly Mortgage Management subsidiary FIDAC. The deal comes at a time when a wave of new managers - particularly those like Annaly that operate as REITs - have opted to dip a toe into the rapidly growing CDO market.

And while a number of industry players are anticipating greater tiering based on such factors as manager experience, at least in Annaly's case, Credit Suisse sold all the bonds in a single day and demand overwhelmed available securities at the top of the capital structure, according to those close to the deal. The A-1 tranche of the deal priced at 25 basis points over Libor, while the double-A and triple-B tranches priced at 50 and 325 basis points over, respectively.

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