Singapore's United Overseas Bank, with over SGD107.4 billion (USD60.3 billion) in assets, is considering managing synthetic collateralized debt obligations linked to asset-backed securities. The asset manager already runs two synthetic CDOs totaling USD3 billion referenced to corporate debt. "Other asset classes are on our study list," said Tay Teck Chye, director of global treasury.
Chye looks at factors, such as investment opportunities and the attractiveness of the structure, when deciding which CDOs to manage. He declined to name the potential counterparties for future mandates but said, "We're quite open--we'll speak with anyone." The two deals UOB manages already are structured by JPMorgan and Deutsche Bank.
