JPMorgan is in the process of closing a USD1.7 billion private managed synthetic collateralized debt obligation in Asia. Mahesh Bulchandani, managing director and head of structured credit products in Tokyo, confirmed the deal and said, "This is the largest one in Asia."
The CDO, which will be actively managed, is referenced to a global credit-default swap portfolio. The transaction will have three funded tranches: an equity portion, a BBB rated tranche and a AA tranche. As for the timing of the deal, Bulchandani attributed it to improved market sentiment.
