Credit Sails was promoted by Forsyth Barr and raised $91.5 million when it was launched in 2006. The underlying collateralised debt obligation assets are managed by Calyon.
Credit Sails says that the nominal value of the securities has been reduced due to “the occurrence of several credit events”. It says each $1000 note has been reduced by $711 each.
And more could come. Credit Sails says: “On the scheduled maturity date, the holders of Credit Sails are expected to receive the redemption value, if any.” The maturity date is in 2012.
Meanwhile ING’s credit funds have also seen their values fall further in December. The unit prices of the Diversified Yield Fund and the Regular Income Fund are now at 28c and 23c respectively.
For the DYF this is a 30% drop since December 14, and RIF is down 28% over the same period.
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