* The overcollateralization ratios of Octagon Investment Partners II, a market-value CDO, have improved over the last year. Better market conditions and sound investment decisions by the asset manager are responsible, according to Fitch Ratings . J.P. Morgan Partners manages the fund, but Octagon Credit Investors is responsible for the loan and bond portions. The fund comprises 58% bank loans, 18% high-yield bonds and 24% in mezzanine and private equity investments.
* Deutsche Bank priced the notes backing a $510 million leveraged loan CDO for Sankaty Advisors called Avery Point CLO. The triple-A rated debt was split into multiple tranches, but a $127.25 million piece priced at LIBOR plus 48 basis points.
* All the overcollateralization ratios of Ares Leveraged Investment Fund II, a market-value CDO, are well above their test levels, notes Fitch Ratings . Ares Management has shifted the allocation among various asset classes since inception in 1998. Originally the fund included 40% high-yield and 25% performing bank loans. Now the fund is 45% performing bank loans and 25% high yield. This was a defensive measure against negative market conditions, notes Fitch, which has affirmed all the rated liabilities issued by the fund.