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Derivatives

Mizuho Eyes ABS CDO Debut For Japanese Market

Tokyo-based Mizuho Securities is looking to offer synthetic collateralized debt obligations linked to asset-backed securities and CDO portfolios for the first time in Japan in the coming months.

Tokyo-based Mizuho Securities is looking to offer synthetic collateralized debt obligations linked to asset-backed securities and CDO portfolios for the first time in Japan in the coming months. A credit derivatives official at the firm said given that persistent tight spreads in its domestic market, Mizuho has started marketing ABS CDOs and CDO squared referened to corporates in other markets, primarily Europe and the U.S. "Investors are requiring higher yield so we have to look to other markets," said the credit official. Mizuho has structured CDOs on Japanese credits since last year, including a managed portfolio. It is looking to close its first deal by early next year.

The portfolios containing international credit will be structured from Mizuho's London desk and distributed in Japan in yen.

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