WestLB seeks diversification
It all started off cordially enough. In May Deutsche Bank kickstarted the market for German mortgage-backed securities, with a Dm1.4 billion ($800 million) securitization of residential mortgages originated by its commercial banking division. Then, in late July, Deutsche Bank returned to the market with what it claimed was the first ever securitization of German corporate loans. But was it?
Although Deutsche Bank was widely reported as having issued the first German collateralized loan obligation (CLO), Dresdner Bank has cried foul.
In April, Dresdner Bank securitized Dm2 billion of its corporate loans through an asset-backed commercial paper and Euro-MTN conduit, Silver Tower, a fact rather lost in the blaze of publicity surrounding Deutsche Bank's term securitization.
Deutsche Bank won't be complaining. But even though Dresdner Bank is well known for not liking the limelight, it is unlikely to be amused. A CLO issued through the commercial paper...
