Over the last three years, more investments in Collateralised Debt Obligations (CDOs) were originated in Singapore than from any other country in Asia ex-Japan, and 2006 was no different. Singapore-based CDO asset managers launched S$6.7 billion CDOs in 2006.
These deals included UOB Asset Management’s Raffles Place Funding II (HG US ABS), Lion Capital’s Singa Funding Limited (HG US ABS), and ST Asset Management’s Orchid III (Mezzanine ABS) and Istana High Grace ABS CDO 1. Prudential Asset Management also launched Silk Road Plus, a managed global synthetic CDO. The portfolio has approximately 50% credit exposure to Asian entities.