LAWFUEL – The Legal Newswire – The London and the New York office of Clifford Chance LLP have advised Channel Capital PLC (Channel), the first credit derivative product company (CDPC) in Europe.
CDPCs are triple-A rated investment vehicles that take credit risk through credit default swaps and earn a leveraged return on their capital. CDPCs can buy and hold credit risk without the regulatory capital costs applicable to banks.
Channel was established by Channel Capital Advisors LLP, a UK based investment manager and a consortium of banks comprising Calyon, KBC Bank and Landesbank Baden-Wűrttemberg.
Channel will initially sell protection on highly rated portfolio tranches of corporate, sovereign and supra-national credit risk.
Neil Hamilton, Capital markets partner at Clifford Chance LLP, comments: “We are delighted to have been involved in this milestone transaction for the European credit market.”
Walter Gontarek, Chief Executive Officer of Channel Capital Advisors LLP comments: “The launching of Channel was more than 12-months in the making; we greatly value the counsel of all our advisors across the legal
tax, regulatory and accounting fronts which led to a successful launch of the company.”
The Clifford Chance team comprised Neil Hamilton, Mark Redinger, Chris Davies, Daniel Neidle, Jonathan Joy, Farid Anvari, Susan Mitcham, Adrien Belanger, Kian Ganz and Eleanor West in the London office and Jerry Marlatt and Robert Weiss in the New York office.
The Dublin office of A&L Goodbody acted for the issuer, while Jersey law firm Bedell Cristin provided Jersey law advice.