Credit risk manager The Murrayhill Company is looking to expand its presence in the consumer asset-backed and CDO markets next year with new product offerings. Murrayhill, which typically offers oversight for mortgage pools of all sorts, is set to launch an array of initiatives, including CDO collateral manager services and an independent mark-to-market valuation service.
For the CDO market, Murrayhill would like to assume surveillance and cash-flow monitoring activities where CDO managers typically lack experience. "In the CDO sector, we can take our expertise from the mortgage market and assist CDO managers in balancing their interests," said President and General Counsel Kevin Kanouff.
Set for a Dec. 15 launch is Murrayhill's mark-to-market service, which Kanouff says will be aimed at portfolio managers and hedge funds as well as CDO collateral managers. Murrayhill will offer an unbiased valuation for bonds and spare clients the process of marking their own portfolios.
As for its CDO product, it is currently in the beta-testing stage of monitoring a hypothetical portfolio of collateral. Murrayhill founder and CEO Sue Ellis anticipates its first such monitoring contract will be inked before year end, with an official announcement out in January.
Fees will be based on the extent of oversight a client desires. While Murrayhill currently conducts roughly 90% of it business in the new-issue market, the current plan is to win assignments on outstanding transactions, to prove itself as an added value as performance improves.
Additionally look for more broad-based servicer evaluations, which Murrayhill currently offers in the mortgage space, but plans on expanding into the auto loan and credit card sectors. "We are not as involved in credit cards and autos as we'd like to be," Ellis said.
Murrayhill, based in Denver, offers credit-risk management primarily in mortgage-related asset classes.