Gents thanks for this. ASIDE from mergers & splitting resources, are manager changes/departures a major issue for the quality of collateral management? Eg: the co-founder of DiMaio Ahmad left for Morgan Stanley the other day. Will this affect D/A Capital's ability to manage their current CDOs? Do the rating agencies give confirmation that it won't change thei ratings of the deal?
Travis, I wish the answer was no, but yes, they're typically worse off at the very least on the reputational/relationship side. The rating agencies would not issue RAC for a key man's departure (only for a proposed change of management of the deal) but there are clauses in the deal docs that allow investors (typically the Controlling Class) to vote to change the deal's manager if, say, one or more of the "key men" leave their posts at that manager (often within, say, a year of each other).Hope this makes things clearer. Yell if not.
Post a Comment