Wachovia Securities finally cleared the debt on the LYNX 2002-1 balance sheet cashflow static pool SF CDO, which borders on a CDO-of-CDOs. Approximately 59% of the deal is backed by collateralized debt obligations. Although Lynx 02-1 initially priced May 08, the two senior classes were marketed and sold this month for "internal reasons".
Settlement was June 19 with interest accrued from May 8. The MBIA wrapped triple-As, which priced at 44 basis points over three-month Libor. Wachovia only offered the $300 million Aaa'/AAA' and the $65 million A3'/A-' classes of notes (Moody's/S&P) to investors. The bank will retain all of the classes below A3' totalling $130 million.
The main players in the deal are Wachovia Balance Sheet Management (BSM) as the collateral contributor, and Structured Credit Partners as the collateral administrator. The deal allows BSM to match funds to longer duration assets and to become less reliant on short-term liquidity such as corporate paper and federal funds. The transaction also provides Wachovia, the fourth largest U.S. bank, with capital relief.
New York-based Structured Credit Partners, LLC is a subsidiary of Wachovia Corporation. The business purpose of SCP is primarily to provide management, administrative, and advisory services to its clients. As of Feb. 1, SCP had approximately $2.2 billion of REIT debt securities, CMBS, ABS, and other asset types under management. The underwriter and issuer could not be reached for comment.