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The new breed

Asian institutional investors are showing increased interest in a new breed of structured credit products such as collateralised commodity obligations and collateralised foreign exchange obligations. Alice Hales reports

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The combination of narrow credit spreads and a relative scarcity of traditional fixed-income instruments in Asia to underpin collateralised debt obligations (CDOs) is forcing the region's institutional investors to look at alternative asset classes. And dealers, sensing an opportunity, have started offering new types of structured credit products, including collateralised commodity obligations

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