French Firm Readies CDO Squared

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French Firm Readies CDO Squared

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CDC IXIS Capital Markets is in the market with a E618 million collateralized debt obligation of CDOs. The CDO squared, called Esano, is CDC Ixis' first public one, but the firm has placed a few private deals in the past, says Richard Jacquet, head of European ABS marketing in Paris. Jacquet says CDC IXIS will continue to structure and sell CDOs in the public market.

Esano is backed by a portfolio of 78 CDOs and a smattering of asset-backeds. It is comprised of four tranches--a super senior credit default swap piece, a junior super senior piece, a triple-A mezzanine piece and an equity tranche. The junior super senior is being offered at 30 basis points over EURIBOR and the triple-A mezzanine piece at 60 over.

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