Amsterdam-based Faxtor Securities, an independent investment boutique specializing in asset-backed securities, is ramping up its second collateralized debt obligation backed by ABS. Jurriaan Oerlemans, managing partner, expects the deal to be priced in the first quarter. It should be followed by a similar transaction in the second half of 2004.
Oerlemans says the deal will be a defensive investment backed largely by consumer and real estate assets. It will not have a CDO bucket.
Oerlemans notes ABS spreads have been tightening on the back of the aggressive bid for assets from newly minted CDO shops and institutional buyers venturing into mezzanine tranches of ABS. Faxtor is looking for value in Italian, Dutch and French residential mortgage-backed deals, he notes.