Cathay Life Insurance, Taiwan's largest insurer with over USD45.6 billion in assets, has entered its first synthetic collateralized debt obligation. Cathay Life purchased USD50 million of a highly-rated tranche on global names, according to an official. JPMorgan was the arranger. "[JPMorgan has] a clear track record for CDOs and provided support," he said. Kelvin Wong, head of credit sales at JPMorgan in Hong Kong, did not respond to messages.
The floodgates for CDOs opened in Taiwan recently when the Department of Insurance announced it would allow insurers to invest up to 5% of their total portfolios in CDOs rated single A or higher (DW, 6/13).
