Global Diversified Investment Grade Income Trust II - Recent announcements by Standard and Poor's on collateralized debt obligations



    MONTREAL, Dec. 21 /CNW Telbec/ - Global Diversified Investment Grade
Income Trust II ("Global DIGIT II") (TSX: GII.UN) announces that, on December
18, 2007, Standard & Poor's Ratings Services ("S&P") issued a press release
disclosing that it had lowered its ratings on 156 tranches from 36 U.S. cash
flow and hybrid collateralized debt obligation ("CDO") transactions.
    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 securities which were downgraded and/or put
on credit watch with negative outlook by S&P:

    
    -------------------------------------------------------------------------
    Issuer             Series  ISIN          Port-  Rating  Rating      Expo-
    name                                     folio  Before     Now      sure
                                                                       ('000)
    -------------------------------------------------------------------------

     Downgraded and Placed on credit watch with negative outlook

    GLACIER FUNDING
    CDO                2006-4A  US37638NAB73  A     AAA     AA+     $ 15,966
    KNOLLWOOD CDO LTD. 2006-2A  US49916RAD26  B      AA      A      $ 19,327
    KNOLLWOOD CDO LTD. 2006-2A  US49916RAE09  C       A     BBB-    $ 28,842

                                 Downgraded

    GEMSTONE CDO LTD            US36868BAE02  C       A      A-     $ 14,825
    LONG HILL, LTD.    2006-1A  US54266TAE29  C       A-    BBB-    $ 11,860
    STATIC
    RESIDENTIAL TRUST  2005-BA  US85768QAF28  C       A-    BBB     $ 28,799
    

    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

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Global Diversified Investment Grade Income Trust II

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