Flagship Capital Management is on the road raising its seventh structured vehicle as demand for leveraged loan CDOs shows few signs of slowing down. Banc of America Securities is lead underwriter for Flagship CLO-IV. In addition to the Flagship series, the New York and Boston-based loan manager, has a SERVES deal and two CLOs that were previously managed by Columbia Management Advisors. Ty Anderson, lead portfolio manager, declined comment.
Buysiders also marketing CLOs, said raising the vehicles is relatively straightforward with demand for structured products strong. However, the difficulty is finding assets. Even with the challenges of allocations and spreads, the arbitrage is still more attractive than other structured products though, such as credit cards. B of A led Flagship’s last transaction, which was increased $50 million during marketing to $350 million. Prior to that Goldman Sachs led Flagship CLO-II.