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Credit derivative developments in Asia Added 10th Jan., 2002 Credit derivatives are already making a headway in Asia, as per a story in the journal The Asset. Vinod Kothari comments on why credit derivatives will be faster to run in India than securitisation - click here.
There have been hardly any notable deals in credit derivatives in Asia. ABN Amro Bank recently reported a transaction of synthetic securitisation issue where risk in mortgage loans was spun off and synthetic securities were issued to investors. This was a HK$1.26 billion synthetic deal, backed by a credit default swap so as to bring the regulatory risk weightage down to 20%. Some CBO deals are also in the making in Asia. |