HSBC Markets Multi-Currency Leveraged Senior Tranches

HSBC is marketing a series of leveraged super senior tranches denominated in euros, sterling and U.S. dollars.

  • 19 Aug 2005
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HSBC is marketing a series of leveraged super senior tranches denominated in euros, sterling and U.S. dollars. The three, five-year, single tranche deals have notionals of 200 million in each currency, and offer investors 10-times leveraged exposure to a portfolio of 125 predominately investment grade credits.

Jeff Jakubiak, managing director and head of structured credit products for Europe and Asia in London, said the deals are being marketed globally to investors looking for return from tight credit spreads. "They are aimed at our traditional CDO customer base that typically invests in mezzanine tranches," he said, adding the multi-currency platform will meet the needs of all potential investors. HSBC aims to raise 500 million in all three currencies.

The static CDOs feature time-dependent loss triggers, which Jakubiak said was more attractive to investors than spread-based triggers. "They are more transparent and easier to understand," he said. The loss trigger forces early unwind or additional note purchase by the investors when the accumulative annual portfolio default loss hits a set percentage. The limit increases every year, allowing for a higher leveraged exposure. The three notes have been given a preliminary rating of AAA by Standard & Poor's.

  • 19 Aug 2005

All International Bonds

Rank Lead Manager Amount $m No of issues Share %
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1 Citi 30,363.50 109 7.56%
2 JPMorgan 27,423.07 94 6.82%
3 Goldman Sachs 27,365.68 53 6.81%
4 Barclays 25,009.79 63 6.22%
5 Deutsche Bank 22,679.02 69 5.64%

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Rank Lead Manager Amount $m No of issues Share %
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1 Mizuho 299.85 1 21.73%
1 ING 299.85 1 21.73%
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1 BNP Paribas 299.85 1 21.73%
5 UBS 60.22 1 4.36%

Bookrunners of all EMEA ECM Issuance

Rank Lead Manager Amount $m No of issues Share %
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1 Goldman Sachs 1,607.28 5 23.03%
2 Credit Suisse 1,301.65 4 18.65%
3 UBS 970.80 3 13.91%
4 BNP Paribas 522.35 4 7.49%
5 SG Corporate & Investment Banking 444.17 3 6.37%