More problems with CDOs

[Rabbitisrich]

From Bloomberg: http://www.bloomberg.com/apps/news?pid=newsarchive&sid=avPkq5Rq.Q9s

 

A TPG Credit Management LP fund offered Oct. 9 to buy $115 million of bank trust preferred securities for 5 cents on the dollar from Tropic CDO V Ltd., according to a trustee report obtained by Bloomberg News. TPG Credit will pay holders of so- called equity portions another $5.75 million to allow the sale, the document says. Equity holders have the right to decide which assets the CDO sells because they’re first in line for losses.