--Aaron Johnson
Ten months after starting its structured products group, Cantor Fitzgerald has closed its first collateralized debt obligation, a $1 billion static cash deal named Collybus CDO I. “The structure is fairly simple,” said Jun Kim, analyst at Moody’s Investors Service. “It’s kind of going back to the old transactions [without] a lot of bells and whistles.” Cantor officials did not return calls.
Collybus, one of only a few asset-backed securities CDOs to price in recent months, is backed by residential mortgage-backed securities. It has a $90 million senior AAA tranche and a $675 million junior AAA tranche. Pricing information could not immediately be gathered.
While the deal is static, manager Commonwealth Advisors can sell off facilities that become ineligible or pose a credit risk, apart from certain restrictions. Proceeds from sales cannot be reinvested, however, Kim noted.
Cantor started its structured products group in January with the hires of Gina Hubbell and Ed LaScala, managing directors (TS, 1/26). Commonwealth officials did not return a call for comment.