Fitch Eyes Taberna CDOs

Thirty-one classes from six Taberna collateralized debt obligations have been placed on Rating Watch Negative by Fitch Ratings. Four of the transactions -- Taberna Preferred Funding II, II, IV, and V -- are static CDOs, and the other two -- Taberna Preferred Funding VI and VII -- are managed CDOs. The transactions are supported by portfolios of trust preferred securities and subordinated debt issued by subsidiaries of real estate investment trusts, real estate operating companies, homebuilders, and specialty finance companies, as well as commercial mortgage-backed securities and, in some cases, senior debt securities or commercial real estate loans. Fitch attributed its rating actions to "heightened concern related to continued negative portfolio credit migration, as well as additional default activity." Fitch can be found on the Web at http://www.fitchratings.com.