Fortis Investment Management and issuer Deutsche Bank are considering upsizing a long-only synthetic investment-grade corporate collateralized debt obligation to satisfy additional investor demand. Further tranches of the deal would be issued in 10-year maturities because seven-year spreads have become so tight.
The EUR300 million deal, called Titian CDO I, consists of 20 AAA to A minus tranches, about two thirds of which have seven-year maturities and about one third of which have 10-year maturities. It is being marketed globally (DW, 10/27) and is expected to close Nov. 25. It has had especially good traction with Asian banks, insurance companies and conduits and may be upsized by about EUR50 million, said officials close to the deal.
Neil Servis, head of synthetic CDOs at Deutsche Bank in London, declined all comment ahead of the close. Cian O'Carroll, portfolio manager at Fortis in Paris, did not immediately return a call.
