Weiss, Peck & Greer, the U.S. investment arm of Holland's largest asset manager The Robeco Group, is prepping its second collateralized debt obligation. The deal should be priced early next month, says a CDO market official. Called Robeco CDO V, the deal will be--as was Robeco CDO II sold last year--backed by high-yield bonds and loans. The arranger for the deal, Rabobank, in New York, is currently marketing the equity and the lower-rated debt tranches. Calls to Weiss and Rabobank were not returned.
The deal will total $300-400 million. A mix of 80% high-yield bonds and 20% high-yield loans backs the notes. The official says the timing for high-yield CDOs is better this month than it was a couple of months ago, as spreads on high-yield bonds have widened, increasing arbitrage opportunities. A CDO analyst with an investment bank says that as of last Monday only one high-yield CDO has been priced this year, (BW, 4/21).