Search results for

Rating: Aaa/AAA/AAA Amount: $100m

UBS AG finally completed its synthetic balance sheet CDO of loans to Swiss small and medium sized enterprises, after a lengthy three month marketing period. The deal, a rare example of a bank CLO from Switzerland, as well as a CLO of SME loans, offers a diversified exposure of secured and unsecured credit lines to 1,397 obligors. Middleland, Western Switzerland and Eastern Switzerland each account for around 19% of the loans.

Banca Nazionale del Lavoro and UniCredit Banca Mobiliare have begun bookbuilding for CF Finance Srl, a securitisation of loans to pharmacists for Credifarma, arranged with Euro Capital Structures. Price guidance for the triple-A Eu531m senior tranche is 45bp-47bp for a 4.8 year average life, with legal maturity in October 2012, while the Eu33m double-A bond is expected to come in the high 60bp area. The double-A bond averages 5.15 years.

Two Italian issuers came to market this week with securitisations of residential and commercial mortgages, pushing spreads out to levels not seen since the end of last year. Banca Agricola Mantovana, a wholly owned subsidiary of the Banca Monte dei Paschi di Siena group, came to market with a Eu306m deal via the bank's own investment banking arm, MPS Finance. The same day two banks based in northern Italy - Banca Popolare di Cremona and Centrobanca - pooled mortgages to launch a Eu323m deal via Citigroup/SSSB.

Deutsche Bank is this year set to become a major issuer of European commercial mortgage backed securities (CMBS). Deutsche spun off its conventional property banking business into Eurohypo in June 2002, but has built up a new real estate debt markets team in London to originate property loans in the manner of US investment banks.

Nine banks of the Banca Popolare di Emilia Romagna group launched a securitisation of non-performing loans (NPLs) this week via SG, using Italian government bonds to overcollateralise the bonds. SG has already used the technique, in a smaller Eu148m deal for 24 co-operative banks last December.

The loan market is watching Fleming Companies this week as rumors circulated that the company had cancelled a meeting with its banks, drawn down on its revolver and could ultimately end up filing for bankruptcy. The company's "B" loan traded in the 94-95 context today and the revolver was offered at 90 with no bids. The food distributer's 10 1/8% notes also tumbled, falling more than 15 points since last week to the 38 range. While the bank meeting was postponed, dealers said the company only drew down on a portion of its revolver, which it needed to fund its capital-intensive business. Fleming financial officials did not comment by Wednesday afternoon.

Barclays Capital has hired Michael Wheeler, an investment grade credit trader from Deutsche Bank in New York, for a similar position. At Barclays, Wheeler will report to his former boss Mark Jicka, managing director and head of credit trading, who joined from Deutsche Bank late last year, where he had headed up investment grade credit trading, said an official familiar with the situation. Jicka declined comment. Wheeler could not be reached.

Barclays Capital has hired Steve Kelleher, foreign exchange sales to institutional clients at Bank of America in London, and Jonathan Pollock, director of institutional fx sales at Credit Suisse First Boston in London. Both will report to Roddy Boulton, head of European fx sales, and will market fx products to institutions, according to individuals familiar with the situation. Boulton was on holiday and could not be reached. A spokeswoman did not return calls.

Banc of America Securities has hired Edward Mirsepahi, senior equity derivatives marketer at Commerzbank Securities in New York, as a principal in equity derivatives marketing to financial institutions. Officials familiar with BofA said the hire reflects a move by the derivatives giant to take advantage of adverse market conditions by nabbing experienced derivatives staffers from rival firms. Mirsepahi was among a round of recent Commerz layoffs (DW, 2/23), noted one insider. He will focus on marketing structured derivatives, according to Jennifer DiClerico, spokeswoman in New York.

Banc of America Securities is preparing the European debut of its synthetic collateralized loan obligation product, SERVES (Structured Enhanced Return Vehicle). SERVES is referenced to a portfolio of high-yield loans, which is then leveraged via a total-return swap, according to firm officials. The details of the European launch are still being ironed out, noted the officials, declining to elaborate. Officials familiar with BofA expect the European offering to be referenced to European high-yield names.