It's true, or so market sources said last week, that Barclays Capital is prepping a $300 million collateralized debt obligation backed by bank trust preferred securities.
Barclays is just the latest to jump on the Trups bandwagon. The 144A placement is backed by trust preferred securities from 30 different banks, sources said.
Not far behind, Salomon Smith Barney, which was the originator of the structure with Regional Diversified Funding I, is in the origination stage of Regional Diversified Funding II, a trust preferred securities CDO for a group of 30-40 regional banks.
The Trups structure gathers assets from a group of small community banks, and places them into a static pool, with no secondary issues. The structure gives the small banks capital market access at a fraction of the normal arranging fees and legal costs, while scoring them tier one capital.
Salomon is also said to be working on a $300 million CBO for Loomis Sayles & Company, continuing the trend of more mutual fund families getting into the CDO game. Loomis Sayles has served institutional, high net worth and mutual fund clients for 75 years. The firm manages more than $65 billion in equity and fixed income assets.
Salomon is also prepping a $500 million collateralized loan obligation for Highland Capital, sources said.
Meanwhile, Credit Suisse First Boston's Pinstripe I CDO, which the firm is marketing for Allied Capital, was upsized to $475 million from $400 million. The deal was expected to have priced on Friday.
Also, CSFB is prepping a Muznich & Co. Inc. cashflow CDO. The deal is likely to be Euro-denominated and feature a wrap. The underlying assets are corporate loans and bonds. It is not clear whether the deal will have investment-grade or high-yield credits underlying the deal.
Lastly, AXA Investment Managers is said to be working on a CDO via Goldman Sachs.