Late August showed a small flurry of issuance in the collateralized debt obligation sector, with two deals agented by First Union Capital Markets, which has been steadily increasing its market presence.
At press time last week, St. George Funding 2000-1, which priced on Aug. 24, was nearing closure. The $440 million CDO is backed by asset-backed securities, and was sold in multiple parts: with triple-A, double-A, and single-A notes, and C class notes. The collateral manager, CGA Investment Management, is a wholly owned subsidiary of CGA Group.
Also via First Union, on Aug. 22, Tennenbaum & Co. priced its $500 million Special Value Bond Fund II, which is being managed by affiliate Special Value Investment Management (see "FU Gives Credit,"ASR 7/10/00).
Meanwhile, the $300 million Falcon IV CBO priced via the European arm of Credit Suisse First Boston. The deal, which is backed by a mixture of U.S. and non-U.S. high-yield bonds, is structured in six parts. The trust holds A-1 and A-2 class notes, subordinated by a series of B class notes, further down by two C classes, and a D class. The ratings range from triple-A to double-B. Gulf International Bank is collateral manager.
