Fitch Ratings took action last week on E*TRADE when it added E*TRADE Global Asset Management Inc. to the list of CDO managers it has reviewed and for which it has issued manager ratings.
Topping the findings of Fitch's report on the firm were experienced levels of management and staff and the quality of documented credit analysis. Fitch also took note of E*TRADE's strong asset-backed securities surveillance practices and tools. The firm's CDOs are structured to contain the same sector diversification as E*TRADE Bank's investment portfolio, Fitch noted in a release about the ratings. In all, the manager received a composite rating of 1.88 on a scale of one to four, with one being the highest rating.