GSC Partners is marketing its second hybrid asset-backed securities collateralized debt obligation. The USD750 million deal, called GSC ABS CDO 2006-4u, is fully ramped and expected to close early next month. It was underwritten by UBS and consists of 75% credit-default swaps referencing primarily mezzanine residential mortgage-backed securities and the rest in cash securities. GSC's first hybrid, GSC ABS CDO 2006-2m, consisted of 45% synthetic collateral and was placed by Merrill Lynch (DW, 6/2). GSC and UBS officials declined all comment.
GSC is working on a similar deal to 4u with RBS Greenwich Capital and on a high-grade deal with Goldman Sachs, both for the fall.