EJF’s CDO
EJF’s CDO would be tied mostly to recently issued sub-debt of community banks and bank holding companies for more than 20 community banks, according to people with knowledge of the offering.
The strength of the securities rests on bank credit profiles that EJF, underwriter Sandler O’Neill & Partners and Moody’s, which is rating the deal, are not broadly disclosing.
EJF didn’t return calls and e-mail messages seeking comment. Calls to Angel Oak Capital, which is helping to pool the underlying assets, were not returned. Sandler O’Neill declined to comment.
Moody’s plans to rate the senior notes Aa2, two levels below its highest grade. Moody’s spokesman Thomas Lemmon said a strength of the transaction is that EJF and Angel Oak are retaining the most risky 20 percent of the deal -- similar to the 18 percent that Siegel said StoneCastle was retaining of the Community Funding CLO.
“All the ingredients are there for it to expand into a larger market again,” Siegel said.