Creditex Trades First Mezzanine Tranche of Structured Portfolio
IFR, March 05, 2001

Creditex, the internet trading and information platform for credit derivatives, has registered its first online transaction of a mezzanine tranche of a structured portfolio trade. The second loss on a structured portfolio was traded via the website. The tranche traded was about E50m in size, and the other portfolio tranches were not posted on the site, according to Brad McKinnon at Creditex in London. He did not divulge who had posted the trade.

McKinnon said that the underlying portfolio was composed of nearly 100 investment-grade credits. The pool included primarily European and US corporates. The trade's maturity was five years, he added.

Market officials noted that parties to structured portfolio transactions tend to be very sensitive about the proprietary nature of their deals, and thus shy away from broking platforms that are transparent. McKinnon said, however, that while Creditex offers transparency in pricing, it also guarantees participants anonymity.

Creditex has seen an increasing number of portfolio trades go through its platform in recent months, with roughly one online portfolio trade per month at present. McKinnon said that the platform has had more than E1.8bn (notional) in portfolios posted, and has traded in excess of E600m.

Back to News