Taipei-based Industrial Bank of Taiwan is finalizing a collateralized debt deal linked to asset-backed securities which it will distribute to clients by the end of the month. The portfolio is 80% linked to U.S. and European asset-backed securities and 20% linked to a CDO of 100 credit-default swaps referenced to U.S. names. "Including the ABS portion increases the tranche yield over a pure CDS structure," said Ted Ling, head of structured finance. Ling noted the deal is being structured with a global investment bank, which will hold the equity tranche of the deal. He declined to name the bank. IBT will sell USD20 million rated Ba2 notes to domestic clients.
Taiwan Bank Readies CDO Deal
