Goldman Sachs Group Inc. (GS:US) is raising a $518 million collateralized loan obligation to be managed by Credit Suisse Asset Management, according to people with knowledge of the deal.
The fund may include a $320 million slice rated AAA by Standard & Poor’s that pays a rate of between 145 basis points and 150 basis points more than the London interbank offered rate, said the people, who declined to be identified because the terms are private. Libor is the rate at which banks say they can borrow in dollars from each other.
CLOs are a type of collateralized debt obligation that pool high-yield, high-risk loans and slice them into securities of varying risk and return.
Bank of America Corp. raised a $413 million CLO for Credit Suisse Asset Management in March, according to data compiled by Bloomberg.
Michael DuVally, a Goldman Sachs spokesman, and Katherine Herring, a Credit Suisse spokeswoman, declined to comment.
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