Two first-time CDO managers are closing a pair of separate deals in the coming weeks, both backed predominantly by CMBS. Real estate investment trust Gramercy Capital Corp. priced a $1 billion CDO last week, and SCFFI GP LLC, an affiliate of hedge fund manager Five Mile Capital Partners, is planning to close a $467 million deal.

As some investors become wary of RMBS-backed CDOs, CMBS-backed CDOs are an expected growth area in the market, according to industry sources. Another first-time asset manager, New York-based CREMAC, is ramping up a CRE-backed CDO it expects to issue this year.

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