ING Investment Management Asia Pacific (Hong Kong) , with USD32 billion under management, is considering expanding its fixed-income portfolio to include purchasing and selling credit-default swaps for the first time next year.
An official at the firm said it would buy credit-default swaps for hedging and sell swaps as a way to enhance yield as well as gain specific exposure to credits that have not issued paper in the cash bond market.
The swaps would be referenced to both Asian and global names. The official noted the credit products, particularly selling protection, would be a good way to diversify the portfolio.
ING is actively talking with derivatives houses. He declined to comment on potential counterparties, but said it is open to deal with any derivatives house and not just ING Barings .