The Asia Pacific Collateralized Debt Obligation Market is expected to witness market growth of 12.4% CAGR during the forecast period (2024-2031).
The China market dominated the Asia Pacific Collateralized Debt Obligation Market by Country in 2023, and is expected to continue to be a dominant market till 2031; thereby, achieving a market value of USD3.57 billion by 2031. The Japan market is registering a CAGR of 11.8% during 2024-2031. Additionally, the India market would showcase a CAGR of 13.4% during 2024-2031.
CDOs can be used with credit default swaps to hedge against the risk of default on underlying assets. This application enables investors to manage their exposure more effectively, protecting their portfolios from credit events. Synthetic CDOs expose the credit risk of a portfolio of reference assets without owning the actual securities, allowing investors to speculate on or hedge against credit risk flexibly.
Additionally, CDOs can be incorporated into SIVs, providing retail and institutional investors access to sophisticated investment products previously limited to larger institutional players. CDOs allow smaller investors to gain access to segments of the bond market that may otherwise be difficult to reach, broadening investment opportunities.
This expanding asset base creates a fertile environment for the development of CDOs in China. The substantial increase in financial assets allows banks to broaden their portfolios of investments and develop structured products that are more appealing to a wider spectrum of investors. Also, banks can mitigate risks and enhance returns by pooling various types of debt instruments, which is particularly attractive in a financial landscape characterized by increasing volatility.
The China market dominated the Asia Pacific Collateralized Debt Obligation Market by Country in 2023, and is expected to continue to be a dominant market till 2031; thereby, achieving a market value of USD3.57 billion by 2031. The Japan market is registering a CAGR of 11.8% during 2024-2031. Additionally, the India market would showcase a CAGR of 13.4% during 2024-2031.
CDOs can be used with credit default swaps to hedge against the risk of default on underlying assets. This application enables investors to manage their exposure more effectively, protecting their portfolios from credit events. Synthetic CDOs expose the credit risk of a portfolio of reference assets without owning the actual securities, allowing investors to speculate on or hedge against credit risk flexibly.
Additionally, CDOs can be incorporated into SIVs, providing retail and institutional investors access to sophisticated investment products previously limited to larger institutional players. CDOs allow smaller investors to gain access to segments of the bond market that may otherwise be difficult to reach, broadening investment opportunities.
This expanding asset base creates a fertile environment for the development of CDOs in China. The substantial increase in financial assets allows banks to broaden their portfolios of investments and develop structured products that are more appealing to a wider spectrum of investors. Also, banks can mitigate risks and enhance returns by pooling various types of debt instruments, which is particularly attractive in a financial landscape characterized by increasing volatility.
List of Key Companies Profiled
- Citigroup Inc.
- UBS AG (UBS Group AG)
- The Bank of America Corporation
- Wells Fargo & Company
- Deutsche Bank AG
- JPMorgan Chase & Co.
- Morgan Stanley & Co. LLC
- Royal Bank of Canada
- Barclays PLC
- Goldman Sachs & Co. LLC
Market Report Segmentation
By Type
- Collateralized Loan Obligations (CLOs)
- Collateralized Bond Obligations (CBOs)
- Collateralized Synthetic Obligations (CSOs)
- Structured Finance CDOs (SFCDOs)
By Application
- Asset Management Companies
- Fund Companies
- Other Applications
By Country
- China
- Japan
- India
- South Korea
- Taiwan
- Malaysia
- Rest of Asia Pacific
Table of Contents
Chapter 1. Market Scope & Methodology
Chapter 2. Market at a Glance
Chapter 3. Market Overview
Chapter 5. Asia Pacific Collateralized Debt Obligation Market by Type
Chapter 6. Asia Pacific Collateralized Debt Obligation Market by Application
Chapter 7. Asia Pacific Collateralized Debt Obligation Market by Country
Chapter 8. Company Profiles
Companies Mentioned
Some of the key companies in the Asia-Pacific Collateralized Debt Obligation Market include:- Citigroup Inc.
- UBS AG (UBS Group AG)
- The Bank of America Corporation
- Wells Fargo & Company
- Deutsche Bank AG
- JPMorgan Chase & Co.
- Morgan Stanley & Co. LLC
- Royal Bank of Canada
- Barclays PLC
- Goldman Sachs & Co. LLC
Methodology
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