Magazine article American Banker

Chase Securitizes Unsold Airline Tickets

Magazine article American Banker

Chase Securitizes Unsold Airline Tickets

Article excerpt

Chase Manhattan Corp.'s investment banking arm, making a big push for business in the world's emerging markets, is proving you can package almost anything into a security.

Among the more unusual offerings is a deal backed by anticipated Philippine Airlines ticket sales, in which Chase is securitizing assets not yet on the client's books. Sources said that investor interest in the Philippine offering, which came to market last month, has been so strong that it has been expanded to $75 million from its original $50 million.

Offerings by Chase Securities Inc. to be priced next week include a $100 million securitization backed by paper pulp exports from Companhia Suzano of Brazil and a $150 million deal backed by remittances to Banamex, a Mexican bank.

These deals reflect growing investor interest in emerging market securitizations, as well as Chase's eagerness to join Citicorp, J.P. Morgan & Co., ING Barings, and Merrill Lynch & Co. as a major organizer of these offerings.

"We've been particularly busy since the merger with Chemical Bank, and we've created a significant market," said Michael J. Malter, managing director and group head of global asset-backed securities at Chase.

He said the company now has seven staff members who develop securitizations with business clients from Latin America and Asia. Chase expects to place $600 million of private emerging market securitizations this year, he added.

More than $8 billion of private emerging market offerings have been issued industrywide this year, Mr. …

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