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Derivatives

Deutsche Bank Readies Global Syndicated CDO Deal

Deutsche Bank is currently wrapping up a large-scale syndicated collateralized debt obligation, which will be distributed globally.

Deutsche Bank is currently wrapping up a large-scale syndicated collateralized debt obligation, which will be distributed globally. Officials at the firm said the CDO will be managed by INVESCO and should be closed in the next few weeks. A portion will be distributed in Asia but Deutsche Bank credit officials declined to further elaborate on the transaction.

One senior credit structurer at a rival house said such transactions will become more commonplace because they offer a more liquid secondary market, which is attractive to trade-oriented investors. In addition, this structure lowers the marginal costs of issuing notes and delta hedging the transaction because dealers can sell several tranches from the same portfolio.

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