Seoul-based Korea First Bank, with KRW37.1 trillion (USD31.6 billion) in assets, is planning to invest in synthetic collateralized debt obligations for the first time. Y.H. Shin, assistant manager in the treasury department, said the firm has gathered information about the instruments and may invest next year.
"We're still determining our strategy," said Shin. The firm has already invested in credit-linked notes and sees CDOs as the next step. Shin declined further comment.
Korea First Bank is not alone in studying the products, Korea Exchange Bank (DW, 8/18) and Hana Bank (DW, 5/11) have also been eyeballing the market.
