Neuberger Pools Fund Stakes in $1.2 Billion Financing

Neuberger Berman Group has sold around $1.2 billion of securities backed by cash flows from a series of funds it oversees, a move that will free up more money for the asset manager.

Known as a collateralized fund obligation, the deal consisted of bonds rated A- and BBB-, as well as a first-loss piece, according to people with knowledge of the transaction, who asked not to be identified discussing a private deal.