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Derivatives

Daiwa Switches To Global CDOs

Japan's Daiwa Securities SMBC is closing its first global synthetic collateralized debt obligation.

Japan's Daiwa Securities SMBC is closing its first global synthetic collateralized debt obligation. The firm has previously concentrated portfolios referenced to Asian credits, but is diversifying because Japanese investors are searching for higher yields. "Clients are now more receptive to international names," said, Nick James, deputy general manager of structured credit in the bond division at Daiwa in Tokyo.

The JPY7.5 billion (USD71.8 million) single tranche static deal is comprised of 40% U.S. credits, 40% European and the remainder from non-Japan Asia. James said Daiwa is continuing its marketing effort and expects to close additional CDOs on global names within the coming months.

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