HSBC and Babson Capital, the Massachusetts-based asset managers, have closed a $502 million managed synthetic CDO.HSBC was sole arranger for “Maple Hill”, which consists of mezzanine tranches rated A to AAA by Standard and Poor’s. It references 125 names and has an extended maturity of seven and 10 years.
Stephen Olentine, head of product marketing for global structured credit products at HSBC, said: “In this tight spread environment, CDO investors across the globe are demanding high-quality portfolios managed by the very best firms. The participation rate by investors on the Maple Hill roadshow was the highest we have ever seen, and reflects the strength of the Babson Capital credit team.”
Tranches were placed with investors from North America, Europe, the Middle East, Australia and Asia. There were 12 issues in swaps and credit-linked notes, with fixed and floating coupons in euros, and in US, Hong Kong and Australian dollars.
More on Credit Derivatives
A new product could smoothe the gap between capital and accounting rules
Banks can use maths - rather than special chips - to boost computing speed
Analysts split on crucial questions for CDS protection holders
No ambiguity in 2014 contracts, but questions exist over 2003 vintage
Sign up for Risk.net email alerts
Nominated for two technology awards
Nominated for post trade technology award
Sponsored webinar: Collateral and counterparty tracking
Isda directors warn on fragmentation, access and liquidity - but expect problems to pass
There are no comments submitted yet. Do you have an interesting opinion? Then be the first to post a comment.