Barclays Capital has launched a synthetic collateralized debt obligation which is exclusively referenced to commodity-default swaps. Commodity-default swaps are barrier options that mimic a credit event by knocking out when the barrier is breached. While several similar structures have been issued before, most have been hybrids combining credit-default swaps with some commodity exposure.
The deal was structured from London, where the firm has a major commodity trading desk, and distributed globally. Calls to Martin Woodhams, head of commodity structured products, were referred to the press office, which did not respond to a message.