Vanderbilt Capital Advisors is preparing a collateralized debt obligation of underlying asset-backed bonds, according to market players. The New York-based manager is currently marketing its $300 million Grand Central CDO via lead manager Bear Stearns, according to several industry participants. An outside official notes that the manager should have no trouble capturing the arbitrage between where it sells the multisector deal to investors and where it acquires the underlying collateral, given the ABS market's abundance of supply in recent months.
Officials at the firm and Lesley Goldwasser, senior managing director for structured finance at Bear Stearns, did not return calls. Further details on the expected breakdown of collateral were unavailable.