A new hemisphere

One of the most advanced CDO deals in emerging markets and Asia has been Hemisphere, a transaction structured as a collection of bespoke single-tranche CDOs in which each tranche was specifically structured based on investors’ needs. Asia Risk talks to the manager behind the deal, BlueBay Asset Management. By Jill Wong

Fund derivatives have emerged over the past year as a new tool for asset managers to customise products for investors. In the past, hedge funds had largely accommodated individual investors’ requirements by creating different funds and managed accounts. This resulted in many firms running a large number of small funds, a strategy that raised costs for the managers and undermined returns. Now, however, asset managers can make use of fund derivatives to repackage existing funds to suit individual