Carmel Pacific Financial is expected to be the next big asset-backed player on the buyside, as this newcomer is looking to purchase over $1 billion in guaranteed asset-backed securities.
Internet commerce developer West Avenue International Inc. has forged an agreement with Carmel Pacific to seek out investment opportunities in almost anything that is "secured or insured," said a source close to the situation. Both Carmel Pacific and West Avenue are sibling companies and part of the same trust.
"The entire portfolio will be made up of asset-backed bonds, CDs, T-bills, or any financial instrument that is guaranteed," the source said.
The company's asset-backed allocation will be sizeable as Carmel is "looking for a minimum of $100 million to $1 billion plus, solely in asset-backeds," the source said. Carmel will buy only double-A- and triple-A-rated ABS transactions to start out, the source said, for up to 92 cents on the dollar.
Oakland, Calif.-based West Avenue is a newly formed company devoted to internet commerce.