CREMAC, a Brooklyn, N.Y.-based asset manager that has traditionally participated in distressed mortgages, has started ramping up assets in order to enter the collateralized debt obligation arena. "There's not too much opportunity in the distressed end right now and this would give us the opportunity to increase our assets under management," explained Joe Cafiero, president.
The manager recently acquired $60 million in high-quality asset-backed securities and Cafiero said it will continue to ramp up assets as it intends to make its debut as a CDO manager by the end of the summer. The manager has selected a bank for the ABS high-grade deal and is in the process of talking to other underwriters for subsequent deals. Cafiero declined to name the bank or those in consideration for future underwriting slots. He added CREMAC is currently eying commercial mortgages and high-grade assets for future deals.