Capmark Investments, the newly-formed USD10.8 billion asset manager formerly known as General Motors Acceptance Corp. Institutional Advisors, is managing its first hybrid collateralized debt obligation. The USD500 million deal consists of 46% credit-default swaps referencing residential mortgage-backed securities and the rest in cash securities.
Jenny Story, managing director, andJeff Berkes, director in credit products at Fitch Ratings in New York, said the structure is similar to other recent hybrid deals and represents increasing investor and manager comfort with synthetic RMBS. Peter Chan, deal manager at Capmark in Horsham, Pa., and John Costango, a structurer at Citigroup in New York, declined comment ahead of pricing next week.
