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Article: Serving the Mid Tier; More than a half-dozen mid-market specialty finance players prep CLOs.
- Article from:
- Investment Dealers' Digest
- Article date:
- December 9, 2002
CopyrightCOPYRIGHT 2002 SourceMedia, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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A growing number of specialty finance firms, looking to increase their market share in the underserved middle market, are eyeing securitization as a possible avenue.
Some are hoping to emulate the likes of Ableco Finance, a specialty finance company and affiliate of Cerberus Capital Management; in the late 1990s it established a revolving collateralized loan obligation (CLO) structure via lead agent CIBC World Markets that has grown to $1 billion in size.
Because to date Ableco's CLO has funded exclusively in the ABCP market, the firm's portfolio growth has taken place below the ABS radar screen, though it's anticipated that Ableco will fund future ...