Tokyo-based Daiwa Securities SMBC is looking to close its first synthetic collateralized debt obligation in Japan and set up a credit trading operation in the coming months. The securities house has looked at launching credit products before (DW, 6/23) but market officials said the firm now has the customers in place and is gearing up to complete its debut yen-denominated synthetic CDO on Japanese names. The deal will be roughly USD100 million.
Additionally, officials said Daiwa will likely set up a trading desk within six months and will consider hiring traders as well as transfer staff after it has established systems and has documentation in place.
