DWS Investments, the retail investment management arm of Deutsche Bank, will manage a EUR400 million synthetic, investment grade collateralized debt obligation arranged by Barclays Capital. The structure offers seven- and 10-year notes denominated in euros, U.S. dollars or yen. The notes will be linked to either long only or long/short exposures and DWS will make substitutions to the underlying portfolio of 100 corporates and sovereigns, which has an average rating of Baa1, throughout the life of the trade.
Called Euler, the CDO was arranged on the back of investor demand for investment-grade structures, said an official familiar with the trade. Investors want to buy into something run by a manager with experience in this area, he added. Structuring officials at Barclays declined comment and Thomas Richter, spokesman at DWS in Frankfurt did not return calls by press time. Euler is being marketed globally to institutional investors and a number of the tranches have already been priced.