Continuing its expansion into securitized markets, GE Asset Management is planning its first CDO for later this year, likely sometime in the third quarter, sources said. The transaction, of a yet-to-be determined size, will be backed by a mix of ABS, MBS and CMBS and reportedly led by Morgan Stanley.
A source at Morgan Stanley denied any knowledge of the upcoming offering.
GE Asset Management has a total of $180 billion in assets under management, of which $99 billion is invested in fixed income. The specific breakdown of structured finance assets in its portfolio could not be disclosed.
This is just the next asset class for the Stamford, Ct.-based asset manager, as parent GE Capital has begun securitizing numerous assets in the past year. GE Capital has sold ABS in the aircraft, equipment lease, commercial loan and wholesale dealer floorplan sectors over the past year and is currently planning its first credit card ABS, also expected in the third quarter.
Copyright 2004 Thomson Media Inc. All Rights Reserved.