Calyon is considering offering credit structures to the Philippines. The idea is at an early stage and the firm isn't intending to have any ground staff there. Products would be marketed either from Hong Kong or Singapore and the expected end users are banks in the country. Pierre Trecourt, head of Asia Pacific credit markets and CDOs at Calyon in Hong Kong, said credit spreads are tight in the Philippines and this gives investors an incentive to diversify, for example into CDOs.
The Philippine economy is being touted to grow in a sustainable manner in 2007 with an expected year-on-year growth in gross domestic product of 4.7% for 2007, according to a report just out by Standard Chartered Bank. In 2006 the year-on-year growth was 5.1%.
