ING Clarion Capital, a New York-based asset manager, is marketing its first synthetic commercial mortgage-backed securities collateralized debt obligation. The $500 million Ansonia deal was structured by Merrill Lynch.
Ansonia is a full capital-structure CDO in the process of being rated by Moody's Investors Service. An official at the agency said the structure has scored well on a measure of collateral diversity in terms of geographic distribution and across cash CMBS deals. Ansonia scored 52 on this measure, compared with an average for similar deals of between 25 and 35. The structure is 90% credit-default swaps on CMBS and 10% cash CDO and CMBS.
ING Clarion Capital has $3 billion under management and manages two other commercial real estate CDOs comprised of cash collateral. A rating agency official said managers that already have experience managing cash deals are looking to ramp up synthetic structures because it is quicker. An official at ING declined comment and officials at Merrill did not return calls by press time.