Dynamic Credit Partners expects to bring its second CDO to the market before year-end, according to sources. The $992 million Barrington CDO Ltd. will contain as much as an 80% concentration of RMBS collateral, up to 50% of that being subprime mortgages.
Dresdner Bank AG's London branch will underwrite the deal, which is expected to close Dec. 15. The $889 million A1 tranche has received a preliminary triple-A rating from Standard & Poor's, with a recommended 11.1% credit enhancement, while the $55 million, triple-A rated A2 tranche is carrying a recommended 5.60% credit enhancement. JPMorgan Chase is acting as trustee on this deal, which is expected to be 95% ramped at pricing, and has a six-year reinvestment period.