Credit Lyonnais prepares Asian-flavoured arbitrage synthetic CDO

This will represent Credit Lyonnais’s first synthetic project in the region, but the bank is no stranger to CDOs and has already structured Emerging Asia CBO, an $80 million arbitrage cash-collateralised bond obligation it arranged for the International Finance Corporation – the private sector arm of the World Bank – which it closed last year.

“We have an initial project which will come out soon, within a month,” Winand said. The synthetic CDO will be based on global assets, including an Asian portion, he added, declining to comment further on the deal.

Winand’s securitisation team is working in conjunction with the bank’s credit derivatives team to structure the transaction.

Synthetic transactions are growing in Japan to compensate for a lack of liquidity in the cash market, Winand said.

Responding to market developments, Credit Lyonnais is beefing up its securitisation and credit derivatives teams in Tokyo, where the bank sees most growth in the region.

Winand moved to Tokyo from Hong Kong last August when Credit Lyonnais reshuffled its fixed-income organisation in Asia. In his new role, Winand oversees the bank’s securitisation team, which has been centralised in Tokyo to develop the whole range of asset-backed securities, from conduit transactions to mortgage-backed to non-performing loan-related structures.

The bank has poached staff from rivals such as Bear Stearns, and the securitisation team is now 15-strong.

Outside Japan, Winand said South Korea remained a good market for securitisation and Taiwan could yield significant potential once relevant legislation is in place.

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.

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