DBS completes pioneering synthetic CLO

The bank successfully moves credit risk off balance sheet and improves its capital adequacy ratios.

An S$224 million transaction was priced yesterday Wednesday almost bringing to a close a complex exercise in balance sheet management. The six tranche deal, which represents the mezzanine level of a S$2.8 billion synthetic securitization, priced in line with expectations after a few late minute structural tweaks.

Although originally, there were four mezzanine tranches all denominated in Singapore dollars, joint lead managers DBS and JPMorgan decided to add two additional dollar-denominated tranches to satisfy offshore demand and shift...

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