Singapore-based OUB Asset Management, which recently became the first portfolio manager in Asia to actively manage a synthetic collateralized debt obligation, is looking to manage additional structures this year. "We're still in the preliminary stages," noted an official at the firm, adding that several investment banks have approached OUB. He said it will chose which CDOs it manages and when based on its prediction for credit derivatives spreads widening and the robustness of the structure.
In late November, the asset manager signed up to handle the USD450 million Spectra I portfolio, structured by ING Barings. "This is an exciting time in Asia for securitization," the official continued, because of innovation, such as the first all Japanese CDO and the number of new players getting involved. The official also said it is likely that OUB will manage two to three additional synthetic CDOs, probably in sizes between USD500 million and USD1 billion. He continued that it is looking to run the portfolios because they provide two sources of return: management fees and the investment return for exposure to an equity tranche.
