Daewoo Securities launches CBO deal

Daewoo Securities has launched a W160 billion CBO deal for small- and medium-sized Korean corporates.

By Rob Davies

January 30, 2001

Koreas Daewoo Securities has re-entered the securitization market with a collateralized bond obligation CBO that parcels together corporate bonds issued by 52 small- and medium-sized domestic companies. The W160 billion deal $124.8 million is unusual in that CBO portfolios typically include bonds issued by larger firms, but Daewoo worked with the Small and Medium Industry Promotion Corporation SMIPC to promote this means of raising funds for smaller corporates.

The underlying asset pool - also valued at W160 billion - comprises bonds rated locally between B and BB-plus, with the exception of a bond issued by the BBB-minus rated video producer, Cimtec. These bonds, with maturities of between one...

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