Investors in the region are getting more sophisticated and looking at more exotic credit structures in order to pick up yield, according to speakers. Along with an increased interest in local managers and domestic credit exposure, Asia Pacific investors are also looking at new structures such as collateralized fund obligations.
Other products on the table attracting interest include structures which combine interest rates and credit, credit funds investing in loans, and managed credit funds incorporating gap-risk and protected via constant proportion portfolio insurance. "This is the next generation of products," said Cedric Podevin, Asia-Pacific head of credit structuring at BNP Paribas, commenting on the credit funds.
