Singapore's United Overseas Bank is considering structuring a USD1.33 billion managed collateralized debt obligation before year end. "We're considering doing at least one more transaction this year," said Tay Teck Chye, director of global treasury at UOB in the Lion City. The firm issued a co-structured deal with Deutsche Bank last week. The firm will go ahead with the deal unless the market collapses.
In the CDOs UOB keeps a portion of the equity tranche, noted Chye. "This aligns the interest of the bank with the investors," he added. The firm's most recent CDO was referenced to 148 credits, of which 65% are from U.S., 30% European, and the remainder are Asian.
Chye noted that it was too early to discuss potential counterparties for a future mandate but said factors, such as relationship, pricing and structuring ability would all be taken into consideration.
