HSBC Offers First Synthetic CLO

HSBC is marketing its first synthetic balance sheet collateralized loan obligation, called Metrix Securities.

  • 20 Oct 2006
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HSBC is marketing its first synthetic balance sheet collateralized loan obligation, called Metrix Securities. The GBP2 billion equivalent floating-rate notes, rated AAA to BB, will be issued in sterling, euros and U.S. dollars. A rash of balance sheet CLOs have hit the market recently in advance of Basel II (DW, 9/15).

Robert Drutman, head of asset-backed securities syndicate for Europe, Middle East and Africa in London, said Metrix is structurally similar to other synthetic CLOs in the market, but is unique because it references a weighted-average investment-grade portfolio. Metrix consists of credit-default swaps referencing predominately U.K. corporate loans. The reference pool will consist of 133 separate obligors and can be replenished with new obligations or increasing amounts of existing obligations throughout the four-year revolving period. The AAA tranche has a 4.96-year weighted average life, and the BB tranche has a 6.78-year weighted-average life with a legal maturity of 2018.

Metrix is HSBC's second balance sheet CLO. The first was a cash deal issued last year. Drutman said using credit-default swaps in the deal gives the firm greater flexibility in accessing a wider range of underlying loans. He expects it to close this week.

  • 20 Oct 2006

All International Bonds

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • Today
1 Citi 416,634.23 1594 9.03%
2 JPMorgan 379,647.36 1732 8.23%
3 Bank of America Merrill Lynch 359,625.73 1304 7.80%
4 Barclays 267,126.92 1079 5.79%
5 Goldman Sachs 267,110.09 921 5.79%

Bookrunners of All Syndicated Loans EMEA

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • Today
1 HSBC 45,073.36 191 6.67%
2 Deutsche Bank 37,312.62 138 5.52%
3 BNP Paribas 36,204.20 208 5.36%
4 JPMorgan 34,040.23 112 5.04%
5 Bank of America Merrill Lynch 32,958.96 107 4.88%

Bookrunners of all EMEA ECM Issuance

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • Today
1 JPMorgan 22,398.41 104 8.67%
2 Morgan Stanley 19,092.40 102 7.39%
3 Citi 17,768.49 110 6.88%
4 UBS 17,693.89 71 6.85%
5 Goldman Sachs 17,256.05 98 6.68%