Dock Street Capital Management to Manage Wadsworth CDO

June 3, 2009 (Mike Peterson, Creditflux): A New York-based start-up company which emerged from KBC Financial Products has taken over a second CDO of ABS, according to a regulatory filing. Dock Street Capital Management, which was formed earlier this year, took over the mandate to manage Wadsworth CDO, a 2006 CDO of ABS which has been in event of default since early last year.

Before this month, Wadsworth CDO was managed by KBC Structured Investment Management, the unit of the Belgian bank which has in effect become Dock Street Capital. It is thought that Dock Street has inherited much of the infrastructure of KBC Structured Investment Management, as well as its staff. The new firm already manages another CDO of ABS, Robeco High Grade CDO I, according to Fitch.

Legally, this is the second change of manager in the short and troubled life of Wadsworth CDO. The deal was launched in September 2006 by Morgan Stanley with Hartford Investment Management (Himco) as manager. The deal was among the first wave of structured finance CDOs to go into event of default. It triggered an EOD in February 2008 and was accelerated but not liquidated. KBC Structured Investment Management subsequently took over as “wind-down” manager on the deal.

Comments are closed.