Carillion loan was hedged in HSBC CLO
HSBC hedged part of its lending to Carillion in a synthetic CLO, Metrix 2015-1, with the latter company’s liquidation announcement on Monday triggering a credit event in the portfolio.
Metrix 2015-1 was issued in December 2015 as HSBC’s first synthetic CLO since the financial crisis. It hedged the risk on a $5bn book of loans to large corporates, with the $300m junior tranche transferred to investors through credit default swaps.On Tuesday, the trustee of the deal
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