Oversubscribed CLO points to returning Asian risk appetite, more CLOs expected

Standard Chartered's most recent Start deal proved oversubscribed, suggesting a returning credit risk appetite in Asia. Meanwhile, more CLOs are expected this year.

Standard Chartered's December collateralised loan obligation (CLO), thought to be the first publicly sold deal in Asia since the crisis was in swing - has proved popular with investors, suggesting that credit risk appetite is returning to the region and investors are losing their fear of synthetic transactions. The deal was a balance sheet transaction for Standard Chartered.

"It was oversubscribed, which is always encouraging," said Matthew Hebburn, partner at Allen & Overy in Hong Kong. "For