HypoVereinsbank, Germany's second largest bank, is looking to complete its first synthetic collateralized debt obligation in Japan in the coming weeks, a deal that will be around USD500 million in size. Nick Hamilton, managing director of securitization and credit trading in Singapore, noted that his team in Tokyo will likely bring the deal to market in five weeks. The CDO, which was held over from last year, is currently being rated.
"It will be biased towards Japanese credits but not uniquely," said Hamilton, adding that it will also contain global names. He declined to comment on the size of each component. The CDO will be denominated in yen and sold to a domestic end-user. "It's been a long process of education in Japan," noted Hamilton, adding that recently Japanese investors have become comfortable with such products. He added, "we definitely will do more of these," but declined to comment if other deals are in the pipeline. HVB has been active in the non-Japan market, continued Hamilton, noting that it has for example completed a number of deals in Singapore.
