The all-Asian CDO

Investors looking for higher yield and diversification in US and European investments have CDO, CDO-squared and other innovative structures to choose from. But investors looking for similarly structured Asian assets will find the Asian CDO a rare animal indeed. By Aileen Saw

Demand for an all- or mostly Asian name collateralised debt obligation (CDO) is clearly here; every banker, investor and portfolio manager Asia Risk spoke to agrees. Yet most investment banks are not obliging. If demand should typically dictate supply, then what are the limitations of the Asian market in facilitating structured credit deals? And which asset classes would the sell side, both local and foreign, expect to see behind the first all-Asian CDO?

Lack of diversification, number of