Singapore’s UOB launches multi-sector CDO

The six-year transaction, called Multi Sector CDO I, is referenced to a portfolio of asset-backed securities and synthetic CDO tranches, and comprises four tranches of notes worth $75 million, rated AAA, AA, A and BBB by Standard & Poor’s. UOB and a relative newcomer to the Asian CDO market, Bank of America, arranged the deal.

It’s UOB Asset Management’s fifth foray into the synthetic CDO market, having launched four investment grade synthetic CDOs since September 2002, arranged in conjunction with Deutsche Bank, JP Morgan Chase and Goldman Sachs.

However, the compression in investment grade credit default swaps this year has prompted the Singaporean firm to look at other asset classes to generate value. “With corporate spreads having tightened considerably in the past 12 months, this is an opportune time to venture into asset-backed securities,” says Terence Ong, senior executive vice-president of global treasury and asset management at UOB in Singapore.

  • LinkedIn  
  • Save this article
  • Print this page  

You need to sign in to use this feature. If you don’t have a Risk.net 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 indvidual account here: