Yapi Kredi Bank (Nederland) is considering boosting its investments in credit-linked notes and is eyeing collateralized debt obligations for the first time. Orhan Altas, head of treasury, said the firm is waiting for spreads to widen before making the plunge, adding that it tested the product last year and is happy with the result. He estimated that the bank could invest 3-5% of the firm's USD350 million of assets. "It is a growing market. You can never close your eyes to this development," said Altas.
The firm is also keeping a close eye on collateralized debt obligations. Altas said it likes the products because they can diversify its loan book. The firm, however, is unlikely to invest in CDOs in the near term because it needs to educate its staff, according to Altas.
