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.

  • 10 Dec 2007
Email a colleague
Request a PDF

--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. thatis 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.

  • 10 Dec 2007

GlobalCapital European securitization league table

Rank Lead Manager/Arranger Total Volume $m No. of Deals Share % by Volume
1 Bank of America Merrill Lynch (BAML) 7,026 25 11.95
2 Citi 6,449 21 10.96
3 BNP Paribas 5,093 18 8.66
4 Barclays 4,040 11 6.87
5 Lloyds Bank 3,615 14 6.15

Bookrunners of Global Structured Finance

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • Today
1 Citi 1,505.59 4 23.31%
2 SG Corporate & Investment Banking 1,292.64 1 20.01%
2 Rabobank 1,292.64 1 20.01%
4 BNP Paribas 598.25 2 9.26%
5 TD Securities Inc 241.54 1 3.74%