Absolute Capital launches first Aussie CDO fund
(23 March 2004 – Australia) Absolute Capital Group has launched Australia’s first Collaterised Debt Obligation (CDO) fund for institutional investors.
Absolute Capital, which is the country’s largest independent fund of managers, said Australia’s aging population and peaking credit cycle meant medium term investors were seeking alternative ways to generate investment income.
The fund’s managing director Deon Joubert said the advantage of CDO equity was that it provided a current income stream as distributions were returned to investors.
He said some 25 percent of CDO equity was bought by insurance companies looking for long term investments risk.
Absolute Capital sold its subsidiary Absolute Capital Markets Limited to a pooled development fund last December in order to move away from third party securitised transactions and focus on structured products.
The fund’s managing director Deon Joubert said the advantage of CDO equity was that it provided a current income stream as distributions were returned to investors.
He said some 25 percent of CDO equity was bought by insurance companies looking for long term investments risk.
Absolute Capital sold its subsidiary Absolute Capital Markets Limited to a pooled development fund last December in order to move away from third party securitised transactions and focus on structured products.
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