HSBC is offering a second set of constant proportion portfolio insurance notes structured by its Asian credit team. The firm has been roadshowing CENTRIS, a long/short credit CPPI structure managed by Solent Capital in London. The transaction is principal protected for its seven-year term and gives investors exposure to mezzanine CDX and iTraxx index tranches. Principal protection is provided by HSBC. The transaction is being offered in multiple currencies and has been marketed in several countries across Asia including Japan, Korea, Taiwan, Hong Kong and Australia as well as Europe. First pricing was in late December and further pricings are scheduled for mid- and late-January.
"We are offering investors exposure to the relative value available in the credit curve, which currently exists between the five-year and 10-year tenors on the referenced indexes," said Jamie Spence, director of structured credit products marketing for Asia in Hong Kong.
An official at Solent noted that interest in the deal had been high and that investors had welcomed it as a change from all the constant proportion debt obligations they were being pitched last quarter.
The deal is the second CPPI structure launched by HSBC's Asian structuring team, following a first-of-its-kind offering in May (DW, 26/5) that eventually reached USD150 million globally. The bank is planning further deals too. CENTRIS has a different structure to the previous MINTS offering, though officials at the bank declined to elaborate further.
