Mizuho Securities Group raised the size of its Delphinus 2007-1 CDO transaction, as a result of strong investor demand, said company officials. Originally sized at $1.2 billion, the CDO will now sell $1.6 billion of debt into the capital markets and is secured by predominantly of triple-B and single-A rated U.S. RMBS.
The announcement is a change of pace for the subprime RMBS and CDO markets, which have been pestered with recurring bouts of volatility in subprime RMBS sector.
"We're witnessing a more pronounced tiering among the deals, as investors are putting a premium on well-structured deals with better quality collateral, especially focusing on the 2007-vintage securities," said Alexander Rekeda, head of structured credit, Americas, for Mizuho Securities. The bank acted as underwriter on the deal, which was managed by Delaware Investments.
