Goldman Sachs and Straits Lion, the Singapore-based asset manager, last week closed a novel Asia CDO called Straits Lion Asia, referencing primarily Asia-based credits. Goldman Sachs acted as sole bookrunner and structuring agent on the seven-year issue, which packages together a US$1.5 billion portfolio of credit default swaps.

The transaction is fairly unique for an arbitrage CDO from Asia in that 65 of the 100-strong reference pool are Asian credits. In most previous CDOs, the bulk of the credits were Europe and U.S. based, due to the relative scarcity of high quality Asian corporate issuers.

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