Back in November, Credit Based Asset Servicing and Securitization (C-BASS) was said to be looking for a lead manager for a first-quarter CDO. Ultimately the firm chose to "feed as many mouths as possible," running a joint book deal via Credit Suisse First Boston and Wachovia Securities, along with co-manager Deutsche Banc. RMBS, CMBS, and ABS assets, respectively, will back the $400 million cashflow structured finance deal.
This will be the manager's third CDO. As with the first two deals, C-BASS is expected to retain 100% of the equity, sources said.
C-BASS is known in the U.S. for its expertise in the subordinated regions of RMBS and home-equity. To broaden its prowess in CDOs, the firm recently hired Landon Parsons, ex-captain of CGA Investment Management's CDO program, as a senior vice president. Along with managing C-BASS's CDO program, Parsons will purchase the non-real estate assets for the structured finance CDOs.
Meanwhile, CSFB reportedly has the sole books on a $300 million arbitrage cashflow leveraged-loan CDO for Barclays Capital Asset Management, although Barclays Capital will inevitably be involved, sources said. Equity marketing has commenced, and the deal is scheduled for this quarter, investors said. Ninety-percent senior-secured loans and up to 10% high-yield bonds will collateralize the transaction.
Further down the pipeline, Bank of America Securities has a $300 million to $400 million structured finance/multi-sector CDO mandate for Summit, NJ based Beacon Hill Asset Management. The deal is currently ramping-up. Real estate will make-up approximately 75% of the reference pool. Expect to see the deal toward the middle of the first half. BAS underwrote Beacon Hill's second CDO.