Global Diversified Investment Grade Income Trust II - Recent announcements by Moody's on residential mortgage-backed securities



    MONTREAL, Nov. 1 /CNW Telbec/ - Global Diversified Investment Grade
Income Trust II ("Global DIGIT II") (TSX: GII.UN) announces that, on
October 26, 2007, Moody's Investors Service Inc. ("Moody's") issued a press
release disclosing that it had cut the ratings of collateralized debt
obligations ("CDO's") tied to $33 billion of subprime mortgage securities
downgraded earlier this month.
    Global DIGIT II receives monthly updates as to the composition of the
reference portfolios. As of the most recent update, the portfolio of Global
DIGIT II contained the following CDO's which were downgraded and/or put on
credit watch with negative outlook by Moody's:

    
    -------------------------------------------------------------------------
    Issuer             Series  ISIN          Port-  Rating  Rating      Expo-
                                             folio  Before     Now      sure
                                                                       ('000)
    -------------------------------------------------------------------------
          Downgraded and Placed on credit watch with negative outlook

    STATIC RESIDENTIAL
     CDO (START)
     2006-B LTD        2006-B  US85768XAB64  A      Aaa     Baa1    $ 21,718
    VERTICAL CDO LTD.          US925345AE06  A       A2     Baa2    $  6,081
    STATIC RESIDENTIAL
     CDO (START)
     2006-B LTD        2006-B  US85768XAB64  B      Aaa     Baa1    $ 16,279
    VERTICAL CDO LTD.          US925345AE06  C       A2     Baa2    $ 10,166

                                   Downgraded
    STATIC RESIDENTIAL
     CDO (START)
     2006-B LTD        2006-B  US85768XAF78  C      Ba1       Ca    $ 14,614

                 Placed on credit watch with negative outlook

    STATIC RESIDENTIAL
     CDO (START)
     2006-A LTD        2006-A  US85768VAC81  A      Aa1      Aa1    $ 12,983
    IVY LANE CDO
     2006-1            2006-1  US46601QAC24  B      Aaa      Aaa    $ 31,976
    STATIC RESIDENTIAL
     CDO (START)
     2006-A LTD        2006-A  US85768VAE48  B       A3       A3    $  9,747
    STATIC RESIDENTIAL
     TRUST             2005-C  US85768TAG40  B       A2       A2    $  7,711
    GEMSTONE CDO LTD           US36868BAE02  C       A2       A2    $  6,354
    STATIC RESIDENTIAL
     CDO (START)
     2006-A LTD        2006-A  US85768VAE48  C       A3       A3    $  3,170
    STATIC RESIDENTIAL
     CDO (START)
     2006-A LTD        2006-A  US85768VAD64  C      Aa3      Aa3    $ 19,042
    STATIC RESIDENTIAL
     TRUST             2005-C  US85768TAG40  C       A2       A2    $  4,691

    
    The exposure of Global DIGIT II to each security, as shown in the last
column of the table, does not have protection from a first loss amount. All of
these amounts can be converted on a unit basis by dividing the relevant amount
by the number of outstanding units of Global DIGIT II (10,392,283). Any loss
incurred on these exposures would reduce the accreted value which stood as at
June 30, 2007 at $9.77 as reported in the Management Report on Fund
Performance.
    As the reference portfolios are actively managed, it is possible that the
amounts of the exposure to each security may change.

    About Global DIGIT II

    Global DIGIT II provides an economic interest in an equity tranche of
credit default swap agreements in respect of portfolios of mortgage-backed
securities, asset-backed securities, structured finance securities, synthetic
corporate exposures and other fixed-income securities.




For further information:

For further information: François Rivard, (514) 879-6405;
http://info.fbn.ca/trusts

Organization Profile

Global Diversified Investment Grade Income Trust II

More on this organization


Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890