Wider Japanese credit default swap spreads and the reshuffling in Japan’s banking sector have created the right market conditions for synthetic collateralised debt obligations (CDOs). The recent blow-out in spreads globally following the revelations of accounting scandals in the US has meant onshore Japanese-only synthetic arbitrage CDOs have begun to look more attractive for Japanese investors. And with the Nikkei 225 stock index reaching a 19-year low in early October, causing
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