Weiss, Peck & Greer--the U.S. investment arm of Holland's largest asset manager, The Robeco Group--is prepping its second collateralized debt obligation, according to sister publication BondWeek. Called Robeco CDO V, the deal will be backed by high-yield bonds and loans. The arranger for the deal, Rabobank, currently is marketing the equity and the lower-rated debt tranches. The deal should be priced early next month, a CDO market official noted. Calls to Weiss, Peck & Greer and Rabobank were not returned.
The deal, which will total $300-400 million, is backed by a mix of 80% high-yield bonds and 20% high-yield loans. The official said 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, thereby increasing arbitrage opportunities.