The collateralized debt obligation market was chock full of deals last week.
Having just finished off Centurion IV via Goldman Sachs in February, American Express Management was back in the market with Centurion V, a $480 million synthetic CDO via J.P. Morgan Chase.
The deal has three tranches, a $408 million triple-A-rated class-A on top, subordinated by a single-A Fitch-only mezzanine tranche, and an unrated equity piece.
The eight-year top class is talked at Libor plus 48-50 area. The deal has a five-year reinvestment period and a three-year non-call period.
Meanwhile, JPMC was also marketing Sequils, a $385 millions corporate loan CLO for Amex
Solstice, Rabobank's multi-asset CDO via Credit Suisse First Boston, priced as expected at Libor plus 48. Although not confirmed yet, the 10-year, double-A-rated class-B is expected to price at Libor +75. Solstice is backed by mostly by ABS, with smaller concentrations of investment grade corporates, CMBS, RMBS, and REITs.
According to investors, Centre Pacific is a week or so away from launching Mammoth, a high-yield, arbitrage CBO via Bear Stearns. This is Centre Pacific's third CDO. One unique factor on this deal is the increased flexibility for the manager to have up to 10% CDO collateral, versus the usual 5% bucket managers are allowed for high-yield CDOs, sources said.
Centre Pacific was formed last year by the former high-yield investment team of Transamerica Investment Services.
Meanwhile, Stanfield Asset Management was shopping the equity tranche of its upcoming CLO/CDO backed by leveraged loans, market sources said.
Details are scarce, but Bear Stearns was close to finishing selling the bonds on a CDO for the Clinton Group, market sources said. The Clinton Group is a New York City-based hedge fund with $3 billion under management.
Also, Coast Asset Management has an upcoming CDO of CDOs, sources said. Lehman Brothers is the underwriter and is understood to be shopping the equity at this time.