BofA Merrill Lynch, Symphony Asset team up for CLO: report

(BestGrowthStock) – Bank of America Merrill Lynch and Symphony Asset Management have joined forces on a new $500 million collateralized loan obligation, the Wall Street Journal said.

A collateralized loan obligation (CLO) involves securitizing some types of loans in a single pool and later selling them to investors in tranches.

The CLO will consist mainly of newly issued loans, rather than refinancing of old loans, a person familiar with the deal told the Journal. It will consist of leveraged loans that have been packaged together and divided into slices of different risk and returns, the newspaper said.

Bank of America Corp (BAC.N: ) will manage the CLO, known as Symphony CLO CII Ltd, the paper said.

Collateral will be $486 million of first-lien debt loans and $14 million of second-lien debt, according to a term sheet reviewed by Dow Jones Newswires, the Journal said.

Symphony Asset Management, which is a unit of Nuveen Investments Inc, manages about $8 billion in client assets as of September 30, 2009, its website ( shows.

Nuveen and Bank of America Merrill Lynch could not be immediately reached for comment by Reuters outside of regular U.S. business hours.


(Reporting by Sakthi Prasad in Bangalore; Editing by Muralikumar Anantharaman)

BofA Merrill Lynch, Symphony Asset team up for CLO: report