Rabobank is looking to structure its first USD500 million synthetic collateralized debt obligations in Asia by year-end, according to Michael Hyde, executive director of capital markets in Singapore. "We've done deals outside of Asia and we're looking to leverage our success by replicating those strategies," said Hyde. He added, the firm has started to receive interest in Asia amid a growing understanding of credit products.
The firm structured a small bespoke CDO last year for a client but Hyde said the CDOs it is working on now will be the first that will need to be marketed to investors across Asia. Rabobank will have an advantage over other firms because it has a AAA rating, according to Hyde.
The CDOs will be referenced primarily to Asian credits but will also include global names. "They will be very Asian-flavored transactions," said Hyde. The Dutch bank plans to sell the equity tranche of the CDOs. "We've seen pockets of interest for lower tranches in Asia," said Hyde.
