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Derivatives

ABN Launches Its First CDO In China

ABN AMRO expects to close its first synthetic collateralized debt obligation in China in the coming days.

ABN AMRO expects to close its first synthetic collateralized debt obligation in China in the coming days. "The appetite in China going forward is good, particularly for single-tranche deals," said David Crammond, Asia-Pacific head of structured credit sales in Singapore. The deal is a USD50 million single-tranche CDO referenced to 100 credits for a Beijing-based client, he noted. The structure, which is expected to garner a double A rating in the coming days, is made up of a diversified range of names, with 54% of the credits from the U.S., 41% European and the balance Asian credits. Only a handful of CDO deals have hit the Mainland market since the first transaction last year (DW, 6/23).


"From start-to-finish, it took two weeks," said Crammond, noting that, for instance, cash CDOs can take months to complete. ABN has more deals in the pipeline, declining to elaborate.


Crammond moved from ABN's New York office last year to boost its regional credit structuring presence (DW, 4/28/03).

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