UBS started marketing its first managed leveraged super senior synthetic collateralized debt obligation in Japan. "Super senior deals still offer relative value and there's almost 0% default risk," said an official at the firm. He continued that given the recent volatility in the credit markets, with Delphi Corp. and Refco as examples, clients in Japan are shifting away from static deals to managed transactions. The firm is currently in dialogue with customers and rating agencies and expects to close the deal in coming weeks. The official noted the deal will be referenced to a pool of global credits and will be looked over by a U.S. manager, declining to further elaborate.
Interest in leveraged super senior deals has picked up in recent months, with such houses as BNP Paribas and JPMorgan closing deals in Japan (DW, 8/12).