Rabobank's structured product portfolio management team is to manage a hybrid asset-backed securities long-short collateralized debt obligation. The firm is marketing the deal globally with Deutsche Bank, which structured the CDO.
An official close to the USD500 million deal, called Hamilton Gardens after a street in London, said it is Rabo's first with the ability to short ABS credits. It consists primarily of credit-default swaps referencing BBB-rated residential mortgage-backed securities and is scheduled to close in September. Officials at Deutsche Bank and Rabobank declined all comment ahead of the deal's close.
