CREMAC liquidates $180m of its bonds.

CREMAC, a Brooklyn-based asset management firm specializing in real estate securities and debt instruments announced that it sold, in a series of transactions, a high yield bond portfolio of $180 million par value.

The portfolio was part of a $215,520,000 acquisition made in summer 2004 by CREMAC from the seller, Flagstone Capital Fund Ltd., a collateralized debt obligation.

The announcement was made by John Cafiero, CREMAC's CEO. Mr. Cafiero said the firm intends to retain ownership of the balance of the portfolio. CREMAC originally had intended to pledge the entire portfolio as collateral in an upcoming collateralized debt obligation (CDO) offering, but the high-yield bond market conditions improved dramatically, making liquidation into the market a far more attractive alternative.

Mr. Cafiero added, "CREMAC took advantage of very attractive bond gains with this liquidation. But it by no means will delay our imminent entry into the CDO arena. We are already planning deals in other sectors such as commercial real estate, mezzanine and high grade CDOs."

He cited the crucial role played by Ronald C. Yung, Director and Portfolio Manager, who joined the firm 18 months ago.

Over the past five months, CREMAC has also purchased $60 million in asset-backed securities.