Subject: Collateralized Debt Obligation (CDO)

  ClassAmt$mlnSubLevel%AvgLife (yrs)RatingS&PRatingFitchFinalPricing (bp)BnchmarkA-1429.6235.009.40AAAAAA+34swapsA-2122.2816.509.72AAAAAA+38swapsB16.5214.009.78AA+AA++44swapsC9.9112.509.78AAAA+45swapsD4.9611.759.78AA-AA-+48swapsE13.229.759.78A+A++52swapsF5.788.8759.78AA+58swapsG14.876.6259.81A-A-+65swapsH11.574.8759.86BBB+BBB++90swapsJ4.964.1259.86BBBBBB+115swapsK6.613.1259.86BBB-BBB-+135swapsL4.962.3759.86BB+BB+NAswapsM3.311.8759.92BBBBNAswapsN2.481.509.94BB-BB-NAswapsO3.301.009.94B+B+NAswapsP0.830.8759.94BBNAswapsQ1.6520.6259.94B-B-NAswapsS4.132NA10.10NRNRNAswaps*Notional amount, interest onlyCollateral balance: $660.95 millionBookrunner(s): RBS Greenwich CapitalLead Managers: RBS Greenwich CapitalCo-managers: Swiss Re Capital MarketsCollateral Manager: Redwood Asset Management Inc.Trustee: LaSalle BankCollateral Types: 74 subordinate CMBS bonds, 86.6 percent of which were issued this ...

JER Investors Trust Inc. priced a $1.2 billion collateralized debt obligation through underwriters Goldman Sachs and Morgan Stanley.The McLean, Va., REIT said the transaction, JER CRE CDO, 2006-2, provided it with a borrowing cost of 63 basis points over Libor ...

Kodiak Funding, a Washington, D.C.,-area company formed last year by former real estate executives at investment bank Friedman, Billings, Ramsey, has floated its first CDO. The company provides corporate-level debt and preferred equity to small- and mid-sized real estate companies.

Gramercy Capital Corp. has priced its second $1 billion collateralized debt obligation, which was backed predominantly by mortgages generated by the New York finance company.The CDO, Gramercy Real Estate CDO 2006-1, will have an initial term of 10 years and ...

NorthStar Realty Finance Corp. said its recent collateralized debt obligation, N-Star Real Estate CDO VII Ltd., provides it funding at a cost of Libor plus 49 basis points. The transaction allows the New York finance company to lock in financing ...

Fitch Ratings has created a separate unit whose focus will be to rate only those collateralized debt obligations that are backed by commercial real estate assets.The group is led by Jenny Story, a managing director who previously focused on new ...

The two Boston REITs, both affiliated with Winthrop Financial, have formed a venture that would originate mortgages. The venture has lined up a $300 million credit facility from Credit Suisse and plans to tap the CDO market for permanent financing.

Fitch Ratings has placed the ratings of 24 bond classes from seven collateralized debt obligations on its rating watch positive list because many of the CMBS transactions underlying the deals have benefited from defeasance.Fitch last week placed the ratings of ...

Collateralized debt obligations backed by commercial real estate came of age last year. More than $21 billion of such issues were priced. Lenders are increasingly looking at the CDO structure to finance certain originations.

The New York investment manager is gearing up the first-ever collateralized debt obligation backed solely by synthetic CMBS and REIT securities. The $400 million issue is being underwritten by Bear Stearns and Wachovia Securities.