Deerfield Capital is in the process of marketing two investment-grade CDOs via Credit Suisse First Boston. CSFB has already have kicked-off equity marketing.
Deerfield is looking at November for pricing, with roadshows starting in Asia Oct. 16-19, and continuing into Europe Oct. 23-26, market sources said.
The first deal, called Port Royal, is a $1 billion managed synthetic CBO backed by credit default swaps on investment-grade credits. Deerfield and affiliates are retaining 50% of Port Royal's equity.
The second deal, Valeo III, is a $500 million arbitrage cashflow investment-grade CBO, which is now marketing $10 million in equity and its $20 million in triple-B notes.
Deerfield and affiliates are said to be retaining 40% of the equity in this trade. It is noteworthy that Deerfield and CSFB are starting their equity roadshow in Asia, where a significant demand for CDOs still exists.