Seoul-based Korea Development Bank is looking to co-structure a synthetic CDO transaction in the coming months with a global credit house. "Gradually, credit products are becoming a well-recognized investment tool," said Man Ho Yoon, general manager in the financial engineering department. Yoon told DW the firm is speaking with investors about offering a CDO comprised of U.S., European and Korean credits in the coming months. The bank is talking to a few international houses about structuring the transaction, he said, declining to elaborate further. KDB launched its first CDO deal last summer, partnering with JPMorgan for the effort.
Yoon continued with credit spreads widening in recent weeks, the firm will shortly decide if now is the right time to go ahead, or if it will wait for further widening. KDB is still contemplating whether the deal will be managed or a static structure.
