The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site. Please see our Subscription Terms and Conditions.

All material subject to strictly enforced copyright laws. © 2022 Euromoney, a part of the Euromoney Institutional Investor PLC.

Salomon plays deft hand

Issuer: Mini-Trups (special purpose vehicle)Amount: $241.7 millionDate: March 23 2000Bookrunner: Salomon Smith Barney

No-one doubts the success of the fixed-income department at Salomon Smith Barney. Since the merger first of Salomon Brothers with Travelers' brokerage house Smith Barney in 1997, and then Travelers itself with Citibank in 1998, the fixed-income group has risen up the bond league tables and made a lot of money in the process.

A greater focus on client relationships at the expense of proprietary trading after the first merger, and a wider base of clients around the world and a balance sheet to boot, after the second, have been two major contributing factors.

But Salomon has also played a deft hand in innovation, as last year's mini-Trups (pronounced troops) structure proves. Trups stands for tier one-qualifying capital securities (the acronym is a bit of a stretch), a collateralized debt obligation, and in itself is nothing new; banks have been launching CDOs and CLOs (collateralized loan obligations) since 1996. But these securities are only economically beneficial to larger banks. Smaller banks find it much more difficult, whether because of legal costs, other set-up costs such as securing a separate credit rating for the securities, or simply because of the premium demanded by investors when investing in small and therefore illiquid securities.

You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.


Unlimited access to and

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually


Unlimited access to and, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors


Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree