Morgan Stanley is working on its next deal through its European Loan Conduit (ELoC) program, just days after closing ELoC 14, called Hermione. The new deal, ELoC 15, will be £440 million and securitize a portfolio of 11 commercial mortgages from the U.K., says Arvind Bajaj, an executive director on Morgan Stanley's capital markets desk, in London.
The Hermione deal, which was priced May 7, featured a dollar tranche, something Morgan Stanley plans to do more often. "One of the major mandates on our desk is to broaden--on a global basis--investors looking at European ABS," Bajaj says. While some ELoC deals have had dollar tranches in the past, more will have them going forward, he notes. He says Morgan Stanley would also like to garner more Asian investors. He did not rule out issuing in yen, but said Japanese investors often buy sterling- and euro-denominated paper.
