Solent Capital Partners in London is marketing a collateralized debt obligation of first-to-default baskets, structured by Barclays Capital. The five-year deal will consist of 50 first-to-default baskets, each with five names. There will be no overlap on the baskets, explained an industry official, who said it is expected to price in June.
Market observers said Solent has been behind several innovative credit structures, including some of the first CDO squareds (DW, 12/17). But one fund manager added pitching credit deals is hard work right now, because of rising credit volatility and investor nervousness in the wake of downgrades on General Motors Corp. and Ford Motor Co. Jonathan Laredo, partner at Solent, confirmed it is marketing the deal, but he referred further questions to Heikki Monkkonen, head of structured credit at Barclays in London, who declined comment.
