Securitization People and Markets

CIT has closed its first collateralized loan obligation out of its new platform. The $512 million CIT CLO I is backed by mostly first-lien loans to middle market companies.

Mortgage lender Kensington said that it was in advanced takeover talks with an offer likely to come in below the previous day’s closing price of 560.5 pence ($11.14).By 1346 GMT, shares in the specialist lender were down 6.6% to 523.5 pence ($10.41), its lowest level since July 2005, valuing the group at around 275 million pounds. ($543.3 million). The shares had been trading up almost 11%. "There can be no certainty that any such offer will be made but in the event that one is made it is likely to value the group at a price below yesterday's closing share price," it said in a statement.Kensington has said it is reviewing its strategic options and it confirmed in April that it was in early takeover talks with unnamed parties. Kensington, which provides mortgages to the self-employed, older-borrowers and people with poor credit histories, declined to name its suitor on Wednesday. Analysts have speculated a large investment bank building an integrated mortgage securitization model could be quick to snap up the firm. Meanwhile, British lender Paragon said on Tuesday it was not interested.Kensington told the market in February its outlook for 2007 profit remained uncertain, after a competitive first quarter.

Sridhar Bearelly, global head of collateralized debt obligation syndication at Lehman Brothers in London, is joining ZAIS Group, a Red Bank, N.J.-based $10 billion hedge fund.

Cairn Capital has priced its fourth mezzanine collateralized debt obligation backed by asset-backed securities.

XL Capital Assurance has added two managing directors to its asset-backed securities group.

Bank of America has hired Alessandro Mele as head of continental European origination in the firm’s global asset-backed securitization effort.

WestLB has lost one of its securitization bankers. David Hough has left the bank and is reportedly headed for a hedge fund.

Commercial Industrial Finance Corp. will begin issuing European collateralized loan obligations starting this year after opening a London office.

Jefferies Finance has hired Steve Goetschius from North Fork Business Capital to spearhead an expansion into larger corporate leveraged loans and work with Babson Capital in starting a standalone collateralized loan obligation business.