The $169 million of senior notes backing CypressTree Investment Partners II, a CDO managed by CypressTree Investment Management Co., have been fully repaid six years before the scheduled maturity. An investment manager explained that the 1998 transaction reached the end of its reinvestment period and then the rapid-fire prepayments of loans and refinancing of bonds caused the deal to prepay far quicker than was anticipated. The vehicle was 30% bonds and 70% loans.
"It's not surprising," said an analyst, who noted that the transaction had reached the end of its reinvestment period. "Because of the rapid prepayment of the loans it could not do anything with the money and so had to prepay quickly," he added. An official at CypressTree declined comment.