Angelo, Gordon & Co. has seen a $6 million improvement in its overcollateralization test balance since April on its Northwoods Capital II deal. The better results are partially due to realized gains on previously defaulted securities, notes Fitch Ratings. Angelo Gordon has historically invested in distressed assets, but the focus for this CLO is par loans, with a 20% bucket for discounted loans. The portfolio has experienced some deterioration since inception in March 2000 with a reduction in its overcollateralization levels of 4%. The target amount of the portfolio at inception was $423 million.