Dealers split over competing repack standardisation efforts

Rival initiatives aim to standardise documentation for repackaged bond investors

boxing gloves
The two approaches have similar aims but are structured very differently

Two groups of dealers have clashed over how best to structure standardised repackaged bond transactions. One bank describes the opposing offering as too operationally complex, while a rival claims its own approach makes default scenarios easier to manage.

Bond repacks, which combine a bond and a derivative into a special-purpose vehicle (SPV) and pay out typically floating coupons to investors, have been a popular way for investors to generate extra yield in recent years.

Dealers are now looking

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact [email protected] or view our subscription options here: http://subscriptions.risk.net/subscribe

You are currently unable to copy this content. Please contact [email protected] to find out more.

To continue reading...

You need to sign in to use this feature. If you don’t have a Risk.net account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here: