All material subject to strictly enforced copyright laws. © 2022 Euromoney Institutional Investor PLC group

German Bank Places Private CDO

Bankgesellschaft Berlin placed a USD400 million private synthetic collateralized debt obligation last month. Richard Gillingham, head of credit derivatives in London, said the reference portfolio is made up of over 50 credit-default swaps on investment grade corporates in North America and Europe. The companies had an average rating of A minus. Investors bought into the five-year deal through either credit-default swaps or credit-linked notes, according to Gillingham. He declined further comment about the CDO.

The bank structured the deal because of a combination of client demand and because returns on the underlying default spreads have increased in comparison to the previous couple of months, according to Gillingham.

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree