AMP Henderson Global Investors (NZ), with over NZD11 billion (USD6.3 billion) in assets, is preparing to enter the credit derivatives market for the first time in the coming months. Peter Scobie, senior portfolio manager of fixed interest in Wellington, said the manager has been reviewing counterparty arrangements and studying products but noted that the lack of standardized documents has delayed its debut, which it began considering last year (DW, 2/24/02). He noted, however, that the asset manager is looking at credit-linked notes and credit-default swaps for its over NZD3 billion fixed income portfolio, as well as CDOs. It will likely take the plunge in the coming months.
Scobie said AMP could earmark USD5-10 million for a AA or higher rated tranche of a global synthetic CDO. "We've been looking at portfolios that are predominately offshore but do include some Australasian names," said Scobie, noting that he is speaking with several houses that have offices in New Zealand.
The asset manager will pick counterparties on the basis of the attracitiveness and diversity of the product, documentation and pricing.