This article appears courtesy of Institutional Investor
Source: Derivatives Week
Laura Cochrane
Fortis Bank has structured a synthetic collateralized debt obligation embedded with a novel forward-starting management technique and has brought on board Solent Capital Partners , a London-based hedge fund controlling USD4 billion in investments, to run the transaction. Reported by market officials to be the first CDO to reference fixed-maturity credit-default swap but allow re-investment in forward-starting contracts, it is designed to allow a manager to capitalize on any widening in credit spreads, said Etienne Courtois , structured credit product manager at Fortis in Brussels.
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