HVB Credit Advisors, a division of HVB Group, has added its first public synthetic collateralized debt obligation to its management portfolio. The Dublin-based company already manages two CDOs on a private basis, but this deal will enable it to expand its client base, said Aogan Foley, managing director. He added the seven-year, investment-grade deal was designed to appeal to AAA-to A-rated buyers and has been sold to institutional investors in Asia, the Middle East and Europe.
Called Keltic One, the USD290 million CDO comprises AAA-, AA-, and A-rated tranches linked to a pool of 120 corporate names, with an average rating of A minus. HVB CA will manage the underlying pool using an active but defensive management style, Foley said, adding the company has also co-invested in the deal. "The alignment of interest was a strong point for investors," he said, declining to detail the nature of his investment.
Citigroup arranged the transaction, but structurers from the firm declined comment.
