Two out of the three collateralized debt obligations that were held by Cigna Investment Management have been transferred to Hartford Investment Management and the third is being transferred to Prudential Investments. Cigna's bank loan team, headed by Mike Bacevich, went over to Hartford last March, but the investors in the CDOs had the right to decide whether the assets of approximately $1 billion across the three structured vehicles, would move over with them, explained Andrew Kohnke, managing director at HIMCO.
Kohnke said it was always hoped the CDOs would move over with the team, but it was not assured, as the equity investors in the vehicles held the cards. The TimesSquare SERVES 2001-1 deal and the Trumbull Rated Loan Fund 2003-1 were the two deals transferred to Hartford, totaling approximately $700 million. The third deal, also a TimesSquare SERVES transaction, is now controlled by Prudential, said Kohnke. Ross Smead, portfolio manager for Prudential's leveraged bank loan division, declined to comment. A Cigna spokesman did not return calls.