Henderson Global Investors is gearing up to manage a second single-tranche synthetic collateralized debt obligation arranged by Calyon. Named Embla, the seven-year structure is likely to top EUR500 million (USD623 million) and will give investors exposure to a single portfolio of primarily investment-grade corporates. The deal follows the EUR250 million (USD 312 million) CDO squared Midgard, which the pair, along with Bank of America, launched earlier this year (DW, 6/10).
An official close to Calyon said the firm is marketing the deal to financial institutions in Asia and the U.K. No date has been set for close. Dominic Powell, head of the investment solutions group at Henderson in London, and Loic Fery, managing director of capital markets and global head of structured credit and CDOs at Calyon in London, both declined comment.
Calyon structured the deal in response to increased investor demand for managed trades, the official said, adding Henderson was chosen on the back of its previous success managing Midgard and Asgard, a CDO of asset-backed securities and CDO tranches which was arranged by Deutsche Bank last year. All three trades take their names from Scandinavian mythology.