Los Angeles-based asset management firm Trust Company of the West - the world's largest CDO manager - is preparing to become a classroom of sorts. In the coming months, TCW will open its doors to a group of Chinese investors interested in learning about CDO management so that they can emulate it. The arrangement will prove beneficial to TCW because the CDO manager, along with a growing number of U.S. CDO market participants, are touting the introduction of CDO technology to Asia's rapidly growing economies as one of this year's largest developments.
Call it Manifest Destiny: Part Deux. As Western culture continues to march East - for better or worse bringing with it Britney Spears, K-Fed, Abercrombie & Fitch and McDonalds - U.S. and European markets are drumming their fingers in anticipation of heightened consumer spending and corporate growth further exerting their influence on Asia. To that end, U.S. asset manager Cohen & Co. recently announced its official expansion into Asia with the opening of Cohen Asia, and a handful of U.S. managers are working on joint ventures with local managers inside China and throughout ex-Japan Asia in order to drum up CDO deal volume.