Deutsche Bank has the mandate for Abbey National's next Marylebone Road CBO III at over Euro 1.5 billion, which is slated to launch in late summer.
According to sources, Abbey is likely to issue on a quarterly basis. The pending deal, which will be a hybrid of an arbitrage and a balance sheet CDO, will be the U.K. bank's third CDO this year. Abbey will put an undisclosed portion of its balance sheet assets in the pool.
Meanwhile, DB is preparing a Euro 400 million -500 million market value hedge fund of hedge fund CDO for Rainer Marc Frey (RMF). The unwrapped deal is in the early pre-marketing stage, market sources added. As expected, Standard & Poor's will rate the transaction, with a possible Fitch involvement as well.
RMF will act as the fund of funds manager investing capital in five to six different fund strategies, spread throughout 25 to 40 different hedge funds. RMF will have a triple-A/single-A/triple-B plus equity capital structure.