Investors are soon to have another chance to buy into the first managed, publicly rated CDO backed by so-called commodity trigger swaps. Barclays Capital last week closed the roughly $100 million first offering of Everest I - the first-ever managed deal of its kind and only the second deal backed entirely by commodity trigger swaps to be publicly rated.

A second close of the deal is in the works, according to Jeffrey Sherman, a vice president at Trust Company of the West. The transaction priced some 100 basis points wider than most new issue CDOs, the deal's arrangers said - a factor that, along with its touted benefits for portfolio diversification, could draw a number in the yield-hungry market.

Subscribe Now

Access to a full range of industry content, analysis and expert commentary.

30-Day Free Trial

No credit card required. Access coverage of the securitization marketplace, including breaking news updated throughout the day.