Eratat Lifestyle private placement brings tranching to dim sum

Author: Ashley Lee | Published: 24 Jul 2013
  • Eratat Lifestyle’s $21.7 million private placement is thought to be the first asset-backed securitisation sold into the dim sum market;
  • It also introduces tranching to the dim sum market, which allows investors to hold different pieces of the deal in accordance with their risk appetite;
  • The Eratat Lifestyle deal was reported to have two tranches, a junior and a senior,with the junior taking an 80% first loss exposure;
  • This is part of the evolution of a new bond market. More tranched deals are expected to follow.

Eratat Lifestyle’s private placement isthought to be the first asset-backed securitisation sold in the dim sum...