With the profusion of new CDO managers entering the market, there has been some buzz surrounding the relative inexperience of some managers, and whether or not this will impact the future performance of these deals.

A recent report from Standard & Poor's provides a snapshot of the collateral manger environment with a listing of the largest managers by size. TCW Group was the largest by dollar volume, accounting for $14.3 billion of the total cash flow CDO market. Babson Capital Management was second with $11 billion in assets under management, followed by Brightwater Capital Management with $9.1 billion under management. PIMCO and BlackRock Financial Management Inc. rounded out the top five.

The survey also included a breakdown by product type, and TCW topped the list of ABS CDO managers as well, with $9.7 billion under management. Brightwater Capital was in second with $9 billion, followed by GMAC Institutional Advisors with $5.6 billion.

In the high-yield CLO category, Credit Suisse Alternative Capital led the pack with $5.3 billion in assets under management. Babson Capital was second with $4.3 billion, and PIMCO was third with $3.8 billion.

Prudential Investment Manage-ment led the way in high-yield CBOs with $3.8 billion, with Babson Capital close behind with $3.6 billion. American General Investment Management, Deerfield Capital Management and Babson led in the investment-grade CBO sector, all with over $1 billion under management.

Prudential Investment is the largest replacement CDO manger, with $3.4 billion under management, the survey found.

The rating agency was careful to note that the survey is "not meant to be a reflection on the abilities of any of the firms listed," but is designed simply to "shed light on the U.S. CDO market shares of U.S. CDO collateral managers," leaving readers to draw their own conclusions.

Copyright 2005 Thomson Media Inc. All Rights Reserved.

http://www.thomsonmedia.com http://www.asreport.com

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