Activity hasn't died in the collateralized debt obligation market, with a small handful of deals set to price before year-end, market sources said.

At press time, UBS Warburg was placing a $500 million collateralized debt obligation called Signiture V. John Hancock Mutual Life Insurance Co. is collateral manager on the deal. No further details were available.

Deerfield Capital Management expects to price its $300 million CBO of ABS sometime this week. The deal, called Mid-Ocean, should close sometime in January. Bear Stearns is placement agent.

Deerfield is also working on a high-grade corporate CDO with Credit Suisse First Boston, though deal size is unclear at this juncture. That deal will likely price past the year-end mark.

Most recently, Deerfield closed a collateralized loan obligation with J.P. Morgan called Sequils-Cumberland I. The $500 million deal was structured in four parts, with two triple-A rated A classes, one single-A rated A class and a triple-B rated C class. The triple-As priced at 42 basis points over the three-month Libor.

Sequils-Cumberland brings Deerfield to just over $1.4 billion in assets under management on the loan side. A source at the firm estimates that Deerfield will hit the $2 billion mark by the end of 2001.

Recently Done Deals

In late November CSFB was placement agent on a CLO from Seaboard Savings Bank. The deal was worth approximately $310 million, structured in six parts, and with ratings ranging from Aaa to Ba1 (Moody's Investors Service).

Barclays Capital is structuring a CDO upsized to $1 billion from $600 million, a source said. The deal, called Corvus Investments Limited Series I, is a balance sheet management CDO, where Corvus will own a credit default swap in reference to a pool of securities on Barclays' balance sheet.

Corvus will issue notes with ratings ranging from triple-A to single-B, plus $30 million in unrated G class notes.

Subscribe Now

Access to a full range of industry content, analysis and expert commentary.

30-Day Free Trial

No credit card required. Access coverage of the securitization marketplace, including breaking news updated throughout the day.