Commerzbank Securities Announces the Close of its Innovative CDO Transaction - SIMS - with ACA.Business Editors NEW YORK--(BUSINESS WIRE)--Feb. 11, 2002 Commerzbank Securities (ComSec) today announced the execution of a Synthetic CDO (Collaborative Data Objects) A programming interface from Microsoft for accessing MAPI-based e-mail, calendaring and scheduling servers. Originally called "OLE Messaging" and "Active Messaging," CDO wraps the Enhanced MAPI library into a COM object that provides the Agreement with American Capital Access (ACA ACA - Application Control Architecture ) relating to a $1 billion portfolio of credit default swaps on investment grade corporate names. The transaction used ComSec's proprietary synthetic collateralized debt obligation Synthetic Collateralized Debt Obligation An artificial collateralized debt obligation that is backed by a pool of credit derivatives. Notes: Rather than the traditional pools of assets such as bonds and loans, the pools of credit derivatives that back synthetic CDOs structure known as a SIMS (Simplified Synthetic Structure). ComSec structured the transaction with ACA acting as the asset manager. The unique structure of this SIMS, which has been rated by S&P, replicates a CDO portfolio, but no securities were issued and no cash funding was required at closing. Ricardo Pascoe, Managing Director & Executive General Manager, Americas comments, "This transaction uses a unique structure developed by ComSec that allows for quicker, more flexible execution. It is an example of the power of our fully integrated credit product platform that combines the trading of synthetic and cash instruments, structuring and distribution. We are pleased that we were able to bring a quality first time manager like ACA to the market." Michael Satz, Chairman and CEO of ACA adds, "We are pleased to be partnering with Commerzbank in a transaction that extracts fair value and optimizes risk management for all parties." Notes to editors: Commerzbank Securities is the fully integrated investment banking division of Commerzbank AG, one of Europe's leading banks with a strong position at the heart of the new Euro-zone. It utilizes access to Commerzbank's $433bn balance sheet (12/31/00) and, A/A1/A credit ratings from S&P, Moody's and Fitch IBCA. In the United States, Commerzbank Securities transacts business through Commerzbank Capital Markets Corporation, a wholly owned registered broker-dealer of Commerzbank AG. Commerzbank Capital Markets Corporation is a member of AMEX AMEX See: American Stock Exchange , NYSE NYSE See: New York Stock Exchange , NASD NASD See: National Association of Securities Dealers NASD See National Association of Securities Dealers (NASD). and SIPC (Simply Interactive PC) An earlier umbrella term from Microsoft and Intel for a PC that works like a home appliance. For example, it has a sealed case, uses external connectors for expansion and boots in just a couple of seconds. . ACA is a financial insurance company established in 1997. The company offers products that utilize credit enhancement and structured finance technology to manage risk. The financial strength of ACA is rated "A" by Fitch and S&P. |
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