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Securitization People and Markets

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  • Delaware Asset Advisors collateralized debt obligation Delphinus CDO 2007-1, a $1.6 billion deal, has breached an overcollateralization trigger and reported an event of default, bringing the EOD tally to nearly 60 deals totaling about $60 billion.
  • Austin, Texas-based Tejas Securities is bulking up its sales staff as it plans to become more active in distressed debt and high-yield investing, including collateralized debt and asset-backed securities.
  • Ratings agency DBRS has been forced to shut down its European offices and reduce personnel in New York and Toronto due to the effects of the global credit crunch.
  • Merrill Lynch has shuttered its commercial real estate collateralized debt obligation unit as it continues to scale back its CDO unit, said a close source close to the situation.
  • Stamford, Conn.-based boutique broker-dealer J Giordano Securities is building out its distressed asset-backed securities group and plans to hire two to three salesmen for the desk.
  • Issuance from the Israeli securitization market is set to grow this year, a contributing factor to Moody’s Investors Service taking a 51% stake in Israeli rating agency Midroog Limited.
  • Robert McGinnis, head of asset-backed finance and trading at RBS Greenwich Capital, has left the firm.
  • Cleveland-based law firm Thompson Hine this month hired Mildred Quinones-Holmes from The Bank of New York Mellon for the newly created position of providing external risk management services for trustees of collateralized debt obligations and other structured products.
  • Merrill Lynch is in advanced talks to receive as much as $5 billion from Temasek Holdings, a state-owned Singapore investment company, reports The Wall Street Journal. Temasek’s board has given preliminary approval to the move, which would inject cash into a firm that has been battered by a devaluation of its securities. Merrill wrote down the value of its asset-backed securities and collateralized debt obligations by $7.9 billion in late October and rumors have been swirling that the company may be slammed by billions more in write downs.