INVESCO Japan, an asset manager with over USD7 billion in assets, is considering selling cash and synthetic collateralized debt obligations to Japanese investors for the first time before year end. The asset manager's first deal is likely to be a cash CDO referenced to its own portfolio of U.S. asset-backed securities and loans, however, it will also consider structuring a synthetic CDO if there is demand. "It all depends on if we can find a buyer for the equity tranche," said Narabu Koga, ceo in Tokyo.
Koga said the firm is looking at offering the products now because investors are hunting for alternative sources of income. "As the market in Japan is not so good, people are looking at alternative investments such as CDOs."
The CDO will be dollar denominated and referenced to U.S. credits. It will be structured from the firm's New York office, likely with the aid of an investment bank. Koga said it will choose the firm based on its distribution capabilities in Japan. He declined to detail the structure or potential size. "It's up to the client."
