Goldman Sachs is preparing to market a synthetic collateralized debt obligation out of its New York headquarters referenced to a USD1 billion pool of credit-default swaps on U.S. investment-grade names, according to a market official. The deal, dubbed Gremlin, is expected to hit the market in the next two weeks. The official said it is one of the first rated synthetic products to come out of the firm's New York division as the majority of the firm's synthetic deals have been structured and rated in London, the official added. The switch to New York has been prompted by the firm's interest in attracting its U.S.-based clients, while avoiding the inconvenience of marketing a new deal for U.S. investors in a different time zone. The official said it is likely that this will be the first in a series of Gremlin deals structured over the course of the year. Alex Reyfman, v.p. of CDO strategy for Goldman Sachs in New York, declined comment.
The tranching of the arbitrage CDO has not been finalized, according to officials.
