yeah, I'm rounding... I think it may be 7.5 for the unfunded, and even that should be a little less IMO. Don't forget that the firm was a complete unknown at the time, and here we were borrowing a billion and a half. So the notes went out at L+50 and I think the shadow rating was Aa2 only (but now AAA+). Actually one can do much better with GICs because you could just fund right away and put the money in the vehicle... I think you could probably get L+10 on the GIC so drag would be less... but then the wrap fee would go up... I dunno - that could have been worked out carefully and saved a few bps. Of course, a few bps is real money here, not to be left on the table... probably would translate into a couple million saved over the life of the deal.

eFinancialNews has an article today about DB's $279M CPEO deal.

securitization.net has an article about a CDO-cubed deal...that's not to say it's a good idea

Securitization or securitisation is still gaining some traction and many deals are pending. I was on the front lines of these particular vehicles and hoping to return. Sell SideWe see a lot of motivated sellers. There are a number of structures and they vary across a number of dimensions unique to private equity. (vintages, funded versus unfunded, prorata stripping of interests). Some vehicles, such as PrimeEdge were primarly blind pools in nature so that the entity receiving proceeds from the sale could invest in a series of funds diversified according to some formulae over a certain period of time. Lately, we are seeing more seasoned portfolios (mostly funded) so it's similar to the private equity secondary market. The technology regarding risk and return is ramping up quickly. The primary approach has been to run monte carlo simulations on distributions of "cash flow paths". Cash flow paths represent the pace of investment and distributions funds of varying strategy make. This information is derived from Venture Economics and then stressed. I think this is a noble first effort, but I have some reservations. Buy SidePersonally, I think there is an opportunity to find good assets cheaply. Not all collateral is of poor quality. Often, later stage, healthy investments are mixed with regional venture capital deals where, not only the deal, but the GP is termininating, but every asset has an expected value (it just may be zero). The most pressing problem stressed in this forum is the general skepticism regarding ultimate performance and transparency in private equity. I think these are legitimate concerns and time will tell, but again, I think the investor with a keen eye will make a bundle. For example, Jeremy Coller, a real pioneer in private equity. Private Equity International has a few pages on the rise of securitisation. It's an entertaining read.