Dresdner Kleinwort Wasserstein is in the midst of putting together a synthetic collateralized debt obligation of asset-backed securities, according to several market participants. The deal is said to be called Alexandra and will have a reference portfolio of around EUR2 billion. Darren Weinstein, a CDO syndication banker at DrKW in London, declined to comment.
Morgan Stanley, Société Générale, Zais Group, Gulf International Bank and Barclays Capital all have recently priced European CDOs of ABS or are working on bringing them to market. The European CDO of ABS segment is still an immature portion of the market, but the few deals that have come to market have been performing well, according to CDO analysts. One reason for the decent performance is ABS' stable ratings.
