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Derivatives

Canadian Market Next Up For CPDO Onslaught

A handful of dealers are looking to introduce constant proportion debt obligations to the Canadian market.

A handful of dealers are looking to introduce constant proportion debt obligations to the Canadian market. Dominion Bond Rating Service, the Canadian ratings agency, has not yet rated any deals for Canadian conduits but reports several proposals. As many as 10 to 20 deals structured out of London for European investors could also be marketed in Canada, according to dealers.

Deutsche Bank is among the handful of dealers waiting for DBRS approval on a deal called DB Stars and Merrill Lynch also reportedly has proposed a deal to the agency. Officials at both firms declined comment.

Kai Gilkes, managing director in the structured finance quantitative group at DBRS in London, said the agency is looking very closely at CPDOs for the Canadian market. He said there is interest from the Canadian market but that DBRS has no timeframe for rating the deals.

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