Barclays Capital is preparing to close its first credit derivative transactions in Korea in the coming weeks. The move follows a concerted effort to build its franchise in Asia this year. "The level of investor sophistication is being upgraded very quickly," said Y.J. Chang, associate director of institutional sales in Seoul, noting that domestic investors are becoming more comfortable shifting into credit products as they search for higher yield in the current low rate environment.
Chang said the firm is finalizing a USD10-30 million single-tranche synthetic collateralized debt obligation referenced to global investment grade credits and has a few credit-linked note transactions in the pipeline.
Barclays established a regional credit structuring desk in Hong Kong and made several high-profile hires earlier this year (DW, 3/21).
