The rise of the Asian CDO market

In the past couple of years, the synthetic collateralized debt obligation (CDO) market has experienced significant development in Asia. Moody's Investors Service's managing director of Asian structured finance, Michael Ye, and vice president and senior structured finance analyst, Jerome Cheng, talk to FinanceAsia about the reasons for the recent growth and explain why issuance has been dominated by arbitrage deals rather than balance sheet transactions.