Singapore's Straits Lion Asset Management, with over SGD10.5 billion (USD5.93 billion) under management, plans to invest USD10-30 million in a collateralized debt obligation mezzanine tranche. The firm recently bought into a USD1 billion hybrid CDO issued by HVB Asia, the Asian arm of Germany's HypoVereinsbank. The fund manager is also the reserve fund manager for the deal, according to Lye Thiam Wooi, v.p.
The asset manager is currently looking at investing in a cash CDO, but when that is closed---probably within six months---it will look at investing in a synthetic CDO. Any CDO will be referenced to Asian names as that is where Straits Lion Asset Management's has expertise. It will also look to act as the backup collateral manager for the transaction.
