Singapore's Pacific Asset Management, with over USD150 million under management, is looking to structure synthetic collateralized debt obligations and start trading credit-default swaps later this year. "We want to start a CDO program," said Desmond Soon, investment manager in the Lion City.
The investment manager is looking to manage CDO portfolios based on regional credits because of its focus on the non-Japan Asia fixed income markets. The deals are likely to be around USD500 million. Soon continued that the fund is currently discussing the plans with investors. Pacific Asset would likely keep the equity tranche in any deal.
Additionally, the Lion City asset manager is looking to begin trading credit-default swap protection in the coming months. "It's all a matter of getting lines," he added. Soon said Pacific is speaking with potential counterparties about credit lines and signing collateral agreements.
