JPM Wins Columbia Loan Portfolio Auction

J.P. Morgan won an auction last week when a Stein Roe/Columbia Management Advisors collateralized loan obligation was liquidated, according to traders.

  • 30 Jun 2004
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J.P. Morgan won an auction last week when a Stein Roe/Columbia Management Advisors collateralized loan obligation was liquidated, according to traders. According to one trader, Citibank put in the cover bid on the portfolio, which comprised a mixture of distressed loans, some illiquid assets, such as small middle-market deals and par loans. The winning bid was 97, and the portfolio was approximately $100 million, said sources.  A J.P. Morgan trader did not return calls by press time.
 
According to a source, one of the big investors in the CLO wanted it wound down because it was close to the end of the reinvestment period. The exact deal could not be determined, but traders said it was a Serves portfolio. The vast majority of these portfolios that were originated pre-2000 have been liquidated in the last six months as investors have cashed out in a hot market (LMW, 6/18).
 
The bank loan division of Columbia was bought by Highland Capital Management earlier this year. Columbia had $2.7 billion in bank loan assets under management in CLOs and prime rate funds. A source said this particular vehicle had not yet been transferred to Highland.
 
The sale of Columbia was necessitated by Bank of America's acquisition of Fleet Bank. Columbia's mutual funds business, which was affiliated to Fleet, was restricted from buying loans originated by Fleet under the Investment Company Act of 1940. The 40 Act was not a big problem when the mutual funds were unable to buy just Fleet loans, but a combined Fleet/B of A creates a bank loan behemoth that represents too significant a chunk of the leveraged loan market to avoid (4/16).
 
  • 30 Jun 2004

GlobalCapital European securitization league table

Rank Lead Manager/Arranger Total Volume $m No. of Deals Share % by Volume
1 Bank of America Merrill Lynch (BAML) 6,415 22 12.84
2 Citi 5,781 17 11.57
3 BNP Paribas 3,530 14 7.06
4 Credit Suisse 2,783 8 5.57
5 Rabobank 2,633 4 5.27

Bookrunners of Global Structured Finance

Rank Lead Manager Amount $m No of issues Share %
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1 Citi 98,446.48 276 13.35%
2 Bank of America Merrill Lynch 90,174.33 262 12.23%
3 Wells Fargo Securities 70,282.48 216 9.53%
4 JPMorgan 51,967.93 167 7.05%
5 Credit Suisse 41,447.11 125 5.62%