Vienna-based Montana Securities may complete another collateralized debt obligation by year-end and is considering launching a CDO of asset-backed securities next year. Stefan Dorfmeister, managing director, says the decision whether to launch another synthetic CDO of investment-grade credit default swaps will be contingent on market conditions.
Founded two years ago, Montana Securities has launched two synthetic CDOs--both of which hit the market in the first quarter. Harmony I, was a E1.5 billion synthetic CDO of investment-grade credit default swaps. Symphony I, on which Montana is the co-collateral manager with AIG Private Bank, was a E500 million offering also backed by investment-grade credit default swaps.