CDO Investor Mulls Managing Deals
GlobalCapital, is part of the Delinian Group, DELINIAN (GLOBALCAPITAL) LIMITED, 4 Bouverie Street, London, EC4Y 8AX, Registered in England & Wales, Company number 15236213
Copyright © DELINIAN (GLOBALCAPITAL) LIMITED and its affiliated companies 2024

Accessibility | Terms of Use | Privacy Policy | Modern Slavery Statement
Derivatives

CDO Investor Mulls Managing Deals

Fubon Securities, the first Taiwan-based securities house to invest in synthetic collateralized debt obligations (DW, 5/5), is considering managing its first deal later this year.

Fubon Securities, the first Taiwan-based securities house to invest in synthetic collateralized debt obligations (DW, 5/5), is considering managing its first deal later this year. Vincent Tsao, deputy manager of the fixed income and derivatives department in Taipei, said the firm is currently in talks with international banks about potential deals. He noted, however, that given the current tightness in credits, it will likely wait until spreads widen out, which it expects to happen in the third quarter.

The securities house will probably keep the equity tranche of any structure it manages and sell the remainder of the deal. "By keeping the equity tranche it would boost investors' confidence," said Tsao. The CDO would be referenced to a portfolio of global names, but Tsao said it was too early to further elaborate on potential structures or sizes.

Related articles

Gift this article