Hybrid Deals Downgraded On EOD

Standard & Poor’s has placed on watch for downgrade two hybrid collateralized debt obligations arranged by Citigroup and UBS after events of default were triggered a week ago.

  • 10 Dec 2007
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--Aaron Johnson

Standard & Poor’s has placed on watch for downgrade two hybrid collateralized debt obligations arranged by Citigroup and UBS after events of default were triggered a week ago. Moody’s Investors Service took negative actions on both deals last month, placing UBS’s Rockbound CDO I on negative watch after downgrading and keeping on watch Citigroup’s Octans CDO III.

The $280 million Rockbound CDO I, which closed in July, is managed by Brigadier Capital Management, a unit of Cohen & Co. thatis still in the fund-raising stage, according to spokesman Joe Kuo. He declined further comment. Only the junior AAA tranche of the CDO is on watch.

Four classes of the $511.4 million Octans III, including two of the most senior tranches, are on watch at S&P. All six rated classes of the Harding Advisory-managed Octans III have been downgraded in the past, with the tranches initially rated AAA, AA and A currently rated A+, BBB+ and BB. All three deals in the Octans series have been on watch at Moody’s since September.

Officials at Harding, Citigrou and UBS did not immediately return phone calls.

  • 10 Dec 2007

GlobalCapital European securitization league table

Rank Lead Manager/Arranger Share % by Volume
1 Citi 10.72
2 Bank of America Merrill Lynch (BAML) 10.66
3 Credit Suisse 6.45
4 Lloyds Bank 6.42
5 JP Morgan 6.35

Bookrunners of Global Structured Finance

Rank Lead Manager Amount $m No of issues Share %
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1 SG Corporate & Investment Banking 1,260.06 2 126,006,164,037.19%
2 Rabobank 1,081.86 1 108,185,922,974.77%
3 Wells Fargo Securities 430.57 1 43,057,020,785.00%
4 SK Securities 192.86 1 19,286,162,593.99%
4 Meritz Financial Group Inc 192.86 1 19,286,162,593.99%