A newly formed asset-management shop wants to purchase lower- rated asset-backed securities and package them into collateralized debt obligations.
The firm, StoneCastle Partners, was founded by Citigroup alumnus Joshua Siegel and two undisclosed partners. Its plan is to buy asset- backed bonds with ratings below single-A on behalf of its clients, and to separately issue collateralized debt obligations and other types of structured products. “We hope to close our first deal by the end of the year,” Siegel said.
It’s too early to say what types of asset-backed securities the firm will target.
StoneCastle expects to finish moving into its Midtown Manhattan office by mid-August. The company will likely bring more structured- finance pros on board as its business grows, possibly doubling the size of its staff by yearend, Siegel said.
Siegel left Citigroup’s CDO-underwriting unit in June to take part in the new venture. As a vice president at Citi, he was known for Grafting CDOs backed by complicated assets. For instance, he worked on some of the earliest securitizations of banks’ trust- preferred shares.
More recently, Siegel specialized in putting together “collateralized fund obligations” – deals backed by alternative- investment vehicles that buy shares of other hedge funds.
Copyright HARRISON SCOTT PUBLICATIONS Aug 1, 2003
