BOCI-Prudential Asset Management is looking to invest in collateralized debt obligations and credit-default swaps for the first time, according to DW sister publication Global Money Management. Lionel Kwok, cio of the USD2.3 billion asset manager, said, "We have used MBS, TIPS and other structured interest rate products in the past and I am looking into extending the product range to CDOs and CDSs or other derivatives."
The asset manager is considering expanding its use of structured products to boost its risk adjusted return, according to Kwok. He said this is particularly important as he predicts interest rates could rise.
Kwok declined to name the firms it is talking with about the products.
