Fortis Investment Management has launched globally a range of notes linked to a managed equity portfolio of U.S. and European corporate credits. The firm offered notes on similar mezzanine portfolios before relative value migrated to equity. The first close from the equity series, dubbed Botticelli in keeping with a range of offerings named after painters, is expected early next month.
Laurent Hirsch, collateralized debt obligation product specialist in Paris, said there is strong demand for the program because investors are aware of and want access to value in the equity portion of the capital structure. He added Botticelli is unique because it offers equity notes customized to all kinds of risk-return profiles. It will include at least: principal-protected, combination equity-mezzanine, constant-maturity credit-default swap and straight equity notes in seven- and 10-year maturities. The pricing has not yet been determined.
Botticelli was structured by Citigroup.
