SG marketing CPDO

Société Générale Corporate and Investment Banking (SG CIB) is marketing its first constant proportion debt obligation (CPDO). The deal, called Stelaris, will feature a short bucket.

SG CIB is in the middle of the book-building process, and hopes to launch the deal at the end of February. The aim is for the CPDO to reach €150-200 million in size, said Tony Venutolo, head of structured credit at SG CIB in London.

As credit spreads continue to contract to record tight levels and spread widening is anticipated, structurers have sought to introduce a short capability into many types of structured credit transactions. For Stelaris, SG CIB has included a short bucket so that when spreads widen, the transaction will benefit. The deal will be taking long positions on the five-year iTraxx and the Dow Jones CDX credit derivatives indexes, and short positions on the 10-year version of the indexes.

Investment banks have wrangled with how to improve upon the first CPDO, called Surf, launched by ABN Amro last summer (see: A new twist).

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 or view our subscription options here:

You are currently unable to copy this content. Please contact to find out more.

You need to sign in to use this feature. If you don’t have a 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