Goldman Sachs Said to Raise $523 Million CLO Fund for CSAM

Goldman Sachs Group Inc. (GS) raised a $523 million collateralized loan obligation to be managed by Credit Suisse Asset Management, according to three people with knowledge of the deal.

The fund, Madison Park Funding IX, includes a $319 million slice rated AAA that has a coupon of 148 basis points more than the London interbank offered rate, said the people, who asked not to be named 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.

Katherine Herring, a Credit Suisse spokeswoman, and Michael DuVally, a Goldman Sachs spokesman, declined to comment.

Bank of America Corp. raised a $413 million CLO for Credit Suisse Asset Management in March, according to data compiled by Bloomberg.

There have been $15.6 billion of CLOs backed by widely syndicated loans raised in the U.S. this year, according to Bloomberg data.

To contact the reporter on this story: Kristen Haunss in New York at khaunss@bloomberg.net

To contact the editor responsible for this story: Faris Khan at fkhan33@bloomberg.net