Cohen Sells $6.8 Billion of CDO Rights to Fortress
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Cohen & Co., the Philadelphia firm that built itself into the second-largest manager of collateralized debt obligations, is selling its contracts to oversee CDOs backed by bank capital notes.
A Fortress Investment Group LLC affiliate bought the management rights on $3.8 billion of Alesco CDOs backed by trust-preferred securities, or TruPS, for $5.4 million, Cohen & Co. said yesterday in a Business Wire statement. The Fortress affiliate also agreed to buy the contracts on $3 billion more for $4.1 million, pending approval of certain equity holders.