Hybrid Deals Downgraded On EOD

© 2026 GlobalCapital, Derivia Intelligence Limited, company number 15235970, 4 Bouverie Street, London, EC4Y 8AX. Part of the Delinian group. All rights reserved.

Accessibility | Terms of Use | Privacy Policy | Modern Slavery Statement | Event Participant Terms & Conditions

Hybrid Deals Downgraded On EOD

Standard & Poor’s has placed on watch for downgrade two hybrid collateralized debt obligations arranged by Citigroup and UBS after events of default were triggered a week ago.

--Aaron Johnson

Standard & Poor’s has placed on watch for downgrade two hybrid collateralized debt obligations arranged by Citigroup and UBS after events of default were triggered a week ago. Moody’s Investors Service took negative actions on both deals last month, placing UBS’s Rockbound CDO I on negative watch after downgrading and keeping on watch Citigroup’s Octans CDO III.

The $280 million Rockbound CDO I, which closed in July, is managed by Brigadier Capital Management, a unit of Cohen & Co. that is still in the fund-raising stage, according to spokesman Joe Kuo. He declined further comment. Only the junior AAA tranche of the CDO is on watch.

Four classes of the $511.4 million Octans III, including two of the most senior tranches, are on watch at S&P. All six rated classes of the Harding Advisory-managed Octans III have been downgraded in the past, with the tranches initially rated AAA, AA and A currently rated A+, BBB+ and BB. All three deals in the Octans series have been on watch at Moody’s since September.

Officials at Harding, Citigrou and UBS did not immediately return phone calls.

Gift this article