Credit-linked note baskets incorporating both ABS and corporate names have emerged in Korea, as investors search for yield and diversification. "This is similar to traditional structures but the underlying is not just corporate names but also ABS," said an official at Barclays Capital. Market officials said such instruments have been sold to insurance companies, for instance, allowing the insurer to hold a different risk profile from existing CLNs and CDOs in their portfolios.
Mixed-Basket CLNs Take Flight In Korea
