People
Jason Polun will be leaving Merrill Lynch Investment Managers in mid-summer to pursue his MBA degree at The Wharton School of Business at the University of Pennsylvania. Polun covered both ABCP and ABS term issuers at Merrill. He says that he looks forward to the opportunity, and jokingly added that it also creates an ideal "FASB hedge."
William McCormick has left West LB to form Church Tavern Advisors LLC, an independent asset management company. At West LB, McCormick was managing director and senior portfolio manager for Greyhawk Funding, LLC, an ABCP conduit launched in 1998. Responsibility for Greyhawk Funding will be assumed by Thomas McCaffery, managing director and head of Global Financial Markets Americas for West LB.
Christopher Donnelly has been hired by Structured Finance Advisors as an analyst and vice president, reporting to Jennifer Quisenberry. Donnelly started last Monday at SFA. "We're thrilled to have him, and he's a real solid, experienced ABS analyst," said Joe Lorusso president & co-founder of FSA.
Mortgage research strategist David Montano, formerly of Credit Suisse First Boston, has jumped to rival JPMorgan, sources confirmed last Monday. Montano, who will report to MBS head Kevin Finnerty and Nanette Abuhoff, head of N.A. rates strategy. IFR Markets
News
Punch Taverns is nearing its next deal, a $670 million refinancing of its 2001 transaction. The transaction will be structured in three tranches, a triple-A GBP325 million class, a single-A GBP180 million class and a triple-B GBP31.5 million class. IFR Markets
Parma, an Italian football club, will securitize television rights and sponsorship contracts in a EUR90 million deal. Abaxbank will manage the transaction, which will likely feature a wrap.
This will be the first club securitization to feature this type of collateral, and will be the first to be publicly placed. Prior deals were backed by tickets receipts. IFR Markets
Banco do Brasil is close to issuing its next MT100 deal, in the $200 to $250 million range. IFR Markets
CDO Whispers
Last week Standard & Poor's placed two triple-A classes of Signature 4 Corp. CDO on watch for downgrade, citing par erosion of the collateral pool.
Some of Wall Street's most sophisticated investors are bullish on buying trust preferred securities backed CDO's, such that the Salomon Smith Barney led MM Community Funding III CDO is oversold and ready to print. The $320 million Aaa/AAA (M/F) 30-year tenor piece is seen at +100bp/6ML, in-line with the last transaction. The $150 million 30-year B-class A3/A- (M/F) is talked at +105bp area/6ML, but may tighten on demand. The deal features $50 million in equity. IRF Markets
Cheyne Capital Management Ltd. of London has kicked-off equity marketing on its $4.4 billion managed investment-grade synthetic CBO via Morgan Stanley. The deal has a 90% super-senior tranche and 10% funded notes underlying. The minimum spread on CDS's is 85 basis points, according to investors. IFR Markets
The $400 million Carlyle High Yield Partners IV, Ltd 2002 arbitrage CF leverage loan backed CDO aims to price this week via Wachovia Securities at +45bp/3ML. One unique aspect of the trade is that it utilizes First Union's APEX credit default swap structure to provide extra credit support. CHYPS IV will use excess spread and a credit default swap to provide the structure with 100% credit support. The class A-2 notes on the deal are delay settle notes and the A-3's are revolving. IFR Markets
Calendar 2002
April 7-10: Orlando, FL Standard and Poor's will host the 17th annual Structured Finance Seminar. For more information call 212-438-2800 or visit http://www.standardandpoors.com/ Events/Articles/pdf/PostcardforEBLAST.pdf
April 15-16: Prague, Czech Republic The Bond Market Association, The American Bar Association and Standard & Poor's will host Sub-Sovereign Finance in the New Europe Conference. For more information, call 212-440-9429 or email mgarcia@bondmarkets.com.
April 22 23: Washington, DC - The Strategic Research Institute will host the Third Annual Student Loan Securitization Symposium. For more information visit www.srinstitute.com/ca271.
April 25-26: New York, NY - The Bond Market Association's 2002 Annual Meeting will be held at The Waldorf-Astoria. For more information, call 212-440-9429 or email mgarcia@bondmarkets.com.
April 30: New York, NY Financial Research Associates LLC will present Synthetic CDOs: The Benefits, Structures, and Innovative Trends. It will be held at The Princeton Club of New York City. For more information call the customer service department at (800) 280-8440.
May 14-15: Royal Park, Tokyo Japanese Securitization will be hosted by the Information Management Network. For more information, visit www.imn.org.
