GMAC Institutional Advisors is planning to issue $1 billion in collateralized debt obligation liabilities that will be backed by a mix of highly rated structured finance assets, according to buy- and sell-side market participants. The firm has more than $6 billion under management and is the investment arm of its lender parent GMAC Commercial Mortgage Co.; this will be its eighth CDO. Dubbed Blue Bell Funding, the deal will be backed by asset-backeds, commercial mortgage-backed securities and residential MBS. A sell-side CDO analyst says 75% of the notes backing the pool will be real estate-related, given the asset manager's expertise in that area. He adds the remainder will be in other ABS sectors, with the assets backing the pool carrying an average double-A rating. Citigroup is distributing the deal.
Brian DiDonato, managing director at the buy-sider in Horsham, Pa., declined to comment on the Rule 144a offering. An official at Citigroup referred queries to Jim Hughes of the CDO syndicate desk, who did not return a call.