Beginning this quarter, the collateralized debt obligation market will likely use two, distinct standings to rank underwriters on the amount of CDO paper they sell, according to a CDO pro familiar with the plans. Credit for the sale of money market classes, or those with a duration of 13 months or less, will be split from totals for longer, term classes, he said.
The league tables are being split based on a recommendation from The Bond Market Association's CDO committee, which is seeking to have the league tables be a more accurate snapshot of a given firm's strength in a particular area (BW, 3/29). Jon Teall, spokesman, said it has suggested to Thomson Financial that the tables be split. The data provider will inform of a final decision within a month. This is part of its overall goal to provide greater transparency in the CDO market and in reaction to the growing use of short-term classes that are funded with high-quality, senior assets. Matt Toole, research manager for Thomson who is dealing with these league tables, did not return a call by press time.