KBRA Affirms the Ratings for Trapeza CDO XIII, Ltd.
29 Sep 2026 | New York
KBRA affirms the ratings on eight classes of notes issued by Trapeza CDO XIII, Ltd. and Trapeza CDO XIII, Inc. (“Trapeza XIII”), a cash flow collateralized debt obligation (“CDO”) managed by Hildene Collateral Management Company, LLC (“Hildene”).
Trapeza XIII is a CDO of trust preferred securities (“TruPS”), surplus notes, and subordinated debt issued by community and regional banks, insurance companies, and their holding companies. The portfolio’s K-WARF decreased to 418 from 747 since the prior surveillance review and is within the BBB- to BB+ range. Trapeza XIII is a static transaction and does not permit reinvestments.
The portfolio at initial rating consisted of 35 assets from 34 obligors with a total collateral par value of $427.9 million and liabilities of $503.9 million. It now contains 35 assets from 32 obligors with a total performing par value of $425.4 million and liabilities of approximately $505.0 million, while six defaulted/deferring positions totaling $44.0 million were identified as of the latest portfolio date.
Total liabilities did not change significantly from the prior surveillance period. Class A-1 declined from $77.5 million to $75.7 million, while Class D declined from $66.9 million to $61.2 million. Class D deferred interest declined from $5.9 million to approximately $0.2 million, while deferred interest on Classes E, F, and G increased from $32.4 million, $13.1 million, and $9.1 million to $36.8 million, $14.9 million, and $10.4 million, respectively. Approximately $1.2 million of partial prepayment proceeds were identified during the surveillance period.
Portfolio credit metrics improved during the surveillance period. Ten performing obligors experienced positive credit migration and none experienced negative migration. K-PD decreased to 9.8% from 14.4%, while portfolio WAL decreased to 10.9 years from 11.9 years.
KBRA first rated the transaction using portfolio data as of August 1, 2024 and it closed on 15 August 2007. The deal maturity is on 9 November 2042.
KBRA’s ratings on the Class A-1, A-2A, A-2B, and A-3 Notes address the timely payment of interest and the ultimate payment of principal by the applicable stated maturity date. KBRA’s ratings on the Class B, C-1, C-2, and D Notes address the ultimate payment of interest and principal by the applicable stated maturity date.
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