OCBC and Deutsche offer $1 billion synthetic CDO

Singapore's Oversea-Chinese Banking Corporation (OCBC) and Deutsche Bank have launched a managed synthetic investment-grade collateralised debt obligation (CDO) transaction worth $1 billion. 'OCBC global investment grade CDO 1' went on sale this week.

OCBC Asset Management will dynamically manage the portfolio, which consists mainly of US and European corporate credit default swaps. There will be two series of notes issued, both privately rated by Standard and Poor’s. Deutsche Bank's London office is acting as the arranger and joint lead manager.

The deal demonstrates the growing confidence of Asian portfolio managers with structured credit. This can be attributed, in part, to the decrease in corporate defaults this year, and to the improving

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