UBS plans first Muni debt synthetic CDO

UBS plans to offer the first-ever municipal bond-backed synthetic CDO, sources said. Alpine III, via UBS as lead manager, will be roughly $200 million in size. The transaction is backed entirely by mark-to-market municipal exposure UBS holds against a relevant muni bond reference entity at the time of a credit event, according to sources familiar with the deal. Offer sheets are due out this week.