Fitch Rates Pioneer/TCW Oak Canyon Funding.NEW YORK -- Fitch Ratings assigns an 'AAA' rating to the credit default swap Credit Default Swap A swap designed to transfer the credit exposure of fixed income products between parties. Notes: The buyer of a credit swap receives credit protection, whereas the seller of the swap guarantees the credit worthiness of the product. associated with the following transaction. Pioneer/TCW Oak Canyon Funding -- C$15,000,000 tranche B 4.70% credit link secured notes, due 2012. The transaction is a single tranche, synthetic managed collateralized swap obligation (CSO (Chief Security Officer) The person in charge of all staff members who are responsible for promulgating, enforcing and administering security policies for all systems within an enterprise or division. ) giving investors leveraged access to the credit risk of a diverse portfolio of credit default swaps comprised of 135 investment grade, corporate reference entities. Oak Canyon gains access to the credit risk of the portfolio via a credit default swap with the Royal Bank of Canada Bank of Canada Canada's central bank, established under the Bank of Canada Act (1934). It was founded during the Great Depression to regulate credit and currency. The Bank acts as the Canadian government's fiscal agent and has the sole right to issue paper money. (RBC RBC red blood cell. RBC or rbc abbr. red blood cell RBC, n See red blood cell count. RBC red blood cells; red blood (cell) count (see blood count). ), London Branch, as swap counterparty. This trade has a scheduled maturity date of March 20, 2012. TCW TCW Total Carat Weight TCW Temporal Cold War (Star Trek Enterprise) TCW Troop Carrier Wing TCW Turnbuckle Championship Wrestling TCW Tasty Coma Wife (Scrubs episode) Asset Management Company will manage the portfolio. The rating addresses the likelihood that investors will have to make a protection payment under the terms of the credit default swap. Oak Canyon pays the swap counterparty for any losses due to credit events experienced in the portfolio above the threshold amount up to the balance on the notes by liquidating collateral. Trading gains or losses from the substitution of reference entities in and out of the portfolio are recorded in the Trading Reserve Account (TRA TRA Training TRA Transfer TRA Transition TRA Tennessee Regulatory Authority TRA Telecommunications Regulatory Authority (Oman) TRA Tax Reform Act (1976, 1984, or 1986) TRA Teachers Retirement Association ), which provides a mechanism for the noteholders to recapture payments made to the swapcounterparty under the credit default swap. If trading losses reduce the TRA balance to zero, then trading gains and losses be will be recorded by adjusting the threshold amount. The ratings are based upon the structure of the issuer, the financial strength of Royal Bank of Canada (rated 'F1+/AA' by Fitch), as the swap provider, and the investment management capabilities of TCW Asset Management Company, as the portfolio manager. Fitch will monitor the performance of this transaction. Deal information and historical data on Oak Canyon is available on the Fitch Ratings web site at www.fitchratings.com. |
|
||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion