London-based North Asset Management is considering launching a managed, capital-protected single-tranche collateralized debt obligation. It will likely be an equity piece and will use constant-proportion portfolio insurance to protect capital invested, said Alex Haidas, managing director of structured credit products.
Haidas said the group is considering an underlying of predominately emerging market credits, in line with three CDOs the manager launched last year with JPMorgan andGoldman Sachs, but has not ruled out including investment-grade or high-yield names. Investor demand will determine whether or not North prints a deal, Haidas noted, adding it will also consider traditional full-capital-structure CDOs.
Haidas, a former JPMorgan and Deutsche Bank staffer, joined North this month, charged with expanding the group's CDO business (DW, 1/16). Set up in 2002 by former Morgan Stanley officials Nick D'Onofrio and George Papamarkakis, it currently has more than USD1billion in assets under management and also runs two hedge funds. Its clients are predominately European institutions.
