Investment management firm Babson Capital Management has been selected by the controlling class of investors to serve as successor collateral manager of two CDOs previously managed by Tricadia Loan Management.
Under the terms of the amended management agreement, Tricadia CDO 2005-4 Ltd., with $250 million in assets, is renamed Ashford CDO I Ltd., and Tricadia CDO 2006-6 Ltd., with $330 million in assets, is renamed Ashford CDO II Ltd.
“We’re delighted to have been selected by the investors to assume management of these CDOs,” said Matthew Natcharian, managing director and head of the structured credit team at Babson Capital.
Natcharian added that including the assumption of the Tricadia portfolios, Babson has been named replacement manager for 16 CDOs and CLOs worth over $4.7 billion since 2003. This fact, he said, "speaks to our global leadership in structured-credit investing and our track record of success over many market cycles.”
Babson Capital was rated No. 1 in the list of top U.S. CLO managers as of Dec. 31, according to a ranking recently released by Standard & Poor’s. Babson Capital leads the list of the 21 largest CLO managers with 29 CLOs, loan CDO of CDOs and CLO market-value deals. Ashford CDO I and II are technically loan CDOs of CDOs, which means the underlying assets backing the CDO are loans aggregated in CLOs.
The firm created its first structured fund in 1991 and now manages 55 CDOs totaling $20.4 billion in structured credit assets as of Dec. 31, 2009.