Fitch Downgrades C-BASS On Failed Merger

Derivative Fitch Thursday downgraded and placed on negative watch C-BASS Investment Management’s collateralized debt obligation asset manager rating to CAM3 from CAM1-.

  • 09 Nov 2007
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--Aaron Johnson

Derivative Fitch Thursday downgraded and placed on negative watch C-BASS Investment Management’s collateralized debt obligation asset manager rating to CAM3 from CAM1-. The downgrade is a result of a review the company is currently conducting of all 23 CDO asset managers it rates.

To date, downgrades of the CDO manager ratings have been related to CDO performance. C-BASS’ downgrade, however, stems from the failed merger of C-BASS’ parent company Radian Group with MGIC Investment, as well as several internal issues that are not yet public, said Vincent Matsui, Fitch analyst. He declined to elaborate on those issues. “The other managers will be much more performance-focused as opposed to the larger organizational issues [C-BASS] is wrestling with,” Matsui said. “C-BASS’ transactions were structured rather conservatively. Where [a CAM rating downgrade] becomes [a problem] is where transactions are structured very aggressively with minimal ratings cushion.”

Bear Stearns Asset Management and GSC Group were the first two managers downgraded as a result of the review. Further manager rating actions as a result of the review will not likely materialize until the end of next week or just before Thanksgiving, Matsui said.

  • 09 Nov 2007

GlobalCapital European securitization league table

Rank Lead Manager/Arranger Total Volume $m No. of Deals Share % by Volume
1 BNP Paribas 5,997 17 15.40
2 Citi 4,679 16 12.02
3 Lloyds Bank 3,158 6 8.11
4 Bank of America Merrill Lynch (BAML) 3,104 10 7.97
5 Morgan Stanley 3,066 8 7.88

Bookrunners of Global Structured Finance

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • Today
1 Citi 69,085.90 230 10.56%
2 JPMorgan 63,371.79 193 9.69%
3 Wells Fargo Securities 50,770.30 154 7.76%
4 Bank of America Merrill Lynch 50,061.19 163 7.66%
5 Credit Suisse 45,499.96 141 6.96%