Basis Capital will act as the collateral manager on two major new collateralised debt obligation (CDO) issues, launching a division which could have $US750 million under management from day one.
The division, to be known as Fort Denison (in honour of the view from Basis’ new Circular Quay offices) will pick the assets underlying CDO issues from investment banks, and manage the assets through the life of each CDO. The founder and chief investment officer of Basis Capital, Steven Howell, said the two appointments with global investment banks so far were “;unique for an Australia-based credit specialist”;, and reflected the skills in the funds manager’s securitisation division. Howell said he could not reveal the sponsors of the two intial CDOs until they had placed the debt with their clients – expected to be a mix of pension funds and fixed interest funds managers, mainly based offshore.
5 December 2006 00:00
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Investments
Ryan Riedler, head of ASX core strategy, Australian equities at Cbus, says the fund will look to generate alpha locally through engagement and that internalisation will help it strengthen its connection with other market participants, as well as its brokers and service providers.
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