FGIC has just passed its first year anniversary of opening its London office. Over the past year, the monoline insurer has achieved market acceptance across a spectrum of deals that range from private finance initiatives to CLOs and everything in between.
The group has a trading desk that provides credit default swaps and, as of the end of October, over $2.5 million notional amount of CLO-type transactions have been closed. FGIC estimates another five to six transactions are likely to happen before year-end. "It's a readily accepted product despite the fact that spreads are increasingly tight - investors are readily willing to buy," said Timothy Travers, senior managing director of the international and utilities division at FGIC. On the infrastructure side of the business, Travers said it's been an equally good year. FGIC has worked on a number of deals with another GBP500 million ($865 million) transaction waiting to close by 2005.