As deteriorating market conditions continue to punish collateralized bond obligations of the 1997 and 1998 vintages, savvy players are developing coordinated high-yield bond workouts addressing the unique constraints of CBOs.

N.Y.-based CDO boutique Triton Partners, with $1.4 billion under management in four high-yield CBOs, is taking steps to resist the impact of the negative credit trends and improve recoveries for its own and other managed CBOs. Triton has set up a dedicated restructuring effort, Triton Partners Restructuring LLC, led by Daniel Arbess, one of Triton's founding partners and a former debt restructuring attorney at White & Case. The company's goal is to organize other high-yield CBO bondholders and serve as an agent in restructuring negotiations to maximize economic recovery in a form suitable to CBO structural constraints.

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