Advisory Firm Considers Launch Of First CDO Investment Fund

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  • 02 Jun 2003
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Structured Credit International Corp, a structured finance advisory firm, is considering launching what it says would be the first mutual fund-like vehicle to invest in collateralized debt obligations. Mahesh Kotecha, president in New York, says the firm is talking to potential investors about creating a fund to buy new and outstanding CDOs. Although it would be open to investing in all tranches, it would focus on buying mezzanine and equity pieces because he says they offer the most relative value. SCIC would invest its own capital and other money on behalf of outside investors--namely, hedge funds--who see attractive valuations in the CDO market but do not have enough expertise in the industry.

He declines to say how large the fund would be, except to note that it would not be a small venture. "You need a relatively good size to diversify, otherwise you are just a taker of deals and you need to have enough size so that [banks] pay attention to you," he notes, adding the fund would invest in CDOs backed by all asset classes. Kotecha also declines to say when SCIC would launch the fund if it decides to do so.


  • 02 Jun 2003

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 %
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1 Citi 1,712.34 6 12.44%
2 SG Corporate & Investment Banking 1,292.64 1 9.39%
2 Rabobank 1,292.64 1 9.39%
4 Mizuho 1,215.54 3 8.83%
5 Wells Fargo Securities 1,012.71 4 7.36%