CDOs with equity puts emerge in Asia

New Angles

JP Morgan Chase has begun marketing synthetic collateralised debt obligations (CDOs) with embedded equity put options to a small number of investors in Asia-Pacific. The structure is aimed at sidestepping the sometimes-thorny issue of determining whether a credit event has occurred, as well as bolstering returns for investors.

“One of the problems with [synthetic CDOs] is whether there has been an event of default and what the recovery rate is going to be,” says Bart Broadman, Japan chairman and

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact or view our subscription options here:

You are currently unable to copy this content. Please contact to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to View our subscription options

If you already have an account, please sign in here.

You need to sign in to use this feature. If you don’t have a account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here