Lehman Launches Extendable CDO Deal

Lehman Brothers in Asia has launched a single-tranche synthetic collateralized debt obligation with an extendable feature in a bid to boost returns.

  • 22 Sep 2006
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Lehman Brothers in Asia has launched a single-tranche synthetic collateralized debt obligation with an extendable feature in a bid to boost returns. "It's purely for yield enhancement," said Leon Hindle, senior v.p. in Hong Kong, noting the proliferation of extendable and callable features embedded in CDOs due to the current tight-spread environment.

The deal, dubbed Beryl Finance Series 2006-10, and rated AAA by Fitch Ratings, is referenced to a USD14.31 billion portfolio comprised of a 155 default-swaps with USD114 million in credit-linked notes being structured. In the transaction, originally targeted for three-years, Lehman has the right, not obligation, to extend the length of the transaction to a final maturity of seven years. As Lehman is the credit protection buyer, it would look to extend the deal out if spreads go wider, effectively allowing it to pay protection at locked-in cheaper levels than available in the market.

Hindle added the deal will be sold to a mix of investors via direct sales and third-party distributors in Asia.

  • 22 Sep 2006

All International Bonds

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • 13 Mar 2017
1 JPMorgan 94,925.33 384 8.39%
2 Citi 87,531.58 331 7.74%
3 Bank of America Merrill Lynch 84,341.49 288 7.46%
4 Barclays 75,288.19 241 6.66%
5 Goldman Sachs 68,504.71 208 6.06%

Bookrunners of All Syndicated Loans EMEA

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • 16 May 2017
1 Deutsche Bank 19,381.65 47 8.82%
2 Bank of America Merrill Lynch 18,968.25 36 8.63%
3 HSBC 18,103.95 50 8.24%
4 BNP Paribas 8,911.57 55 4.05%
5 SG Corporate & Investment Banking 8,885.00 54 4.04%

Bookrunners of all EMEA ECM Issuance

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • 16 May 2017
1 JPMorgan 8,369.56 33 8.53%
2 UBS 8,282.28 33 8.44%
3 Citi 6,605.58 44 6.74%
4 Goldman Sachs 6,444.85 31 6.57%
5 Bank of America Merrill Lynch 6,215.31 24 6.34%