Details surfaced last week on a CDO from collateral manager John Hancock Mutual Life Insurance. The $325 million to $350 million deal is called Signature VI CDO, and will be placed by Morgan Stanley.
The transaction is said to be backed by rated corporate bonds and un-rated private placements. Timing is still uncertain and the debt class may not be launched until late September. Sources say the deal is structured with a triple-A class comprising roughly 80%, a single-A at 10%, and an equity tranche at 10% .
Interestingly, the bonds backing the deal were reportedly purchased by Hancock as part of Lucent Technology’s pension fund, which the floundering technology firm wants back in cash, sources said.
