cdo information on bnb

Well the skeletons are coming out of the closet finally for the big commercial banks,,,,

From the BNB website

Babcock & Brown manages three CDOs.

Babcock & Brown also manages a closed end CDO Investment Fund which has approximately US$80.2 million (A$91.3 million) of risk capital subscribed by sophisticated investors. Babcock & Brown owns 9.9% of the fund.

Currently the CDO Investment Fund has investments in the three Babcock & Brown managed CDO’s and one third party managed CDO which was sponsored by Babcock & Brown. Importantly, unlike many funds, the CDO Investment Fund is currently un-leveraged and has surplus cash awaiting investment. Equally important, the Fund is not exposed to margin calls. Its currently un-drawn leverage facility is committed for the term of the Fund and has no provisions for market value based collateralisation. The Fund is closed end and is not subject to redemptions, and its returns are cash flow based rather than a function of market values.