Standard Chartered completes synthetic CLO of Asian trade debt

Standard Chartered has completed a balance sheet synthetic CLO, according to rating announcements by Moody’s. The bank bought protection on between 7% and 16% of a portfolio of trade finance debts. The pool comprises 1,617 different borrowers, most of them unrated. For the most part, the companies are located in Asia and the debts are mainly short term.

The CLO was completed as two separate transactions. Sealane II Senior CDS included $270 million of notes referencing a slice of a $3 billion portfolio. Pamir Senior CDS comprised $135 million of notes referencing a $1.5 billion portfolio. The attachment and detachment points, and portfolio characteristics of the deals were the same. Moody’s rated the different classes of notes between A3 and Aaa.