Carillion loan was hedged in HSBC CLO

HSBC 2
By Owen Sanderson
17 Jan 2018

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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