BlueBay Asset Management in London plans to launch a second collateralized debt obligation this year, said Alex Khein, head of structured products.
Khein said BlueBay will issue one more CDO this year backed by either investment-grade or high-yield debt. BlueBay issued its first CDO in March, a €350 million single tranche synthetic CDO of emerging market debt dubbed Hemisphere, which included €80 million of funded notes. BlueBay recently hired Dan Bebello, associate in the collateralized debt obligation structuring team at Deutsche Bank in London, to bring its structuring team to four professionals. Khein said he is planning one more internal hire to complete the team.
Khein's team is also structuring fund derivatives such as constant proportion portfolio insurance on BlueBay's single-strategy funds. "Our top priorities are structuring CDOs and fund derivatives on emerging market debt, high-yield debt, and investment-grade debt--which gives us six projects to focus on," observed Khein.
