The most recent issue comes from Shield, a repackaging vehicle established by the Commonwealth Bank of Australia. The vehicle issued A$60 million of Series 18, A$10 million of Series 19, and A$100 million of Series 20 portfolio CLNs rated AA, A and AA, respectively, by Standard and Poor’s. Noteholders effectively buy credit risk on the same notional portfolio of 100 equally weighted corporates and financial institutions.
“This is the third round of rated portfolio CLNs issued by Shield, with the first round of four series issued six months ago and the second round of five series issued three months ago,” said Da Silva. Shield has also issued three rated series of repackaged notes, two rated series of single-name CLNs, and one rated series of first-to-default baskets since March.
Da Silva noted that two to three smaller programmes of portfolio CLNs – at around A$30-50 million each - are also expected to be issued by the end of the year, although she declined to comment on the issuers.