New York Manager To Wrap Up Delayed CFO Deal

  • 19 Jan 2003
Email a colleague
Request a PDF

Ivy Asset Management plans to ramp up and have its $150-200 million collateralized fund obligation ready to price in March, a few months behind schedule, according to a collateralized debt obligation market participant. The deal, originally slated for pricing in the fourth quarter, was delayed because Ivy, the collateral manager, was busy putting together two protected principal notes, he says. John Rogers, president of the Garden City, N.Y.-asset management firm, declined to comment. Wachovia Securities will underwrite the deal, which is backed by hedge fund-of-funds. Tom Wickwire, the head of Wachovia's credit structured product group in Charlotte, did not return calls.

The hedge fund-of-funds in the collateral will use a diversified enhanced alpha fund hedge fund strategy. Unlike the two outstanding publicly rated CFO deals, Man Glenwood and Diversified Strategies, this deal will not receive a rating by a rating agency, in other words, the transaction is "privately rated," the market participant said. Another CDO market participant speculates that the lack of ratings could be due to Ivy's allegedly failed efforts to find buyers in a former CFO, which according to market speculation, ended up not closing as originally structured (BW, 3/17).

An analyst says that while it is not uncommon to see CFO deals getting done without a rating in Europe, it has not occurred in the U.S. The reason for this discrepancy between U.S. and European markets has to do with insurance wraps. While U.S. CDOs get wrapped by monoliners, European CFOs are insured by large multi-line insurers using their own internal ratings, and those typically do not need a separate stand-alone seal of approval from a rating agency, he explains. It could not be determined if the U.S.-based Ivy deal will be wrapped.

  • 19 Jan 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 %
  • Last updated
  • Today
1 Citi 1,505.59 4 13.16%
2 SG Corporate & Investment Banking 1,292.64 1 11.30%
2 Rabobank 1,292.64 1 11.30%
4 Wells Fargo Securities 942.61 3 8.24%
5 Mizuho 875.48 2 7.65%