BNP Paribas is finalizing a yen-denominated global synthetic collateralized debt obligation for Japanese clients. The transaction, dubbed M1, will total JPY10 billion (USD91 million) and is referenced to a mixture of U.S., European and Australian names.
"Even though spreads are tighter globally, U.S. and European markets offer relatively better value than in Japan," said Shun Cajot Yoshida, credit structurer in Tokyo. Yoshida also partly attributed the interest in overseas credits to a lack of debt issuance in Japan: "There's been a scarcity of new paper," he noted.
