Singapore’ OCBC Bank wrote down its corporate CDO portfolio to zero, taking an additional SGD94 million ($63.92 million) allowance in the first quarter. Its total investment in corporate CDOs was SGD205 million and it had invested SGD100 million in CDOs of ABS. Both portfolios have now been written down to zero.
The bank’s write-down of its corporate CDOs, which are thought to be CSOs, is unusually severe, possibly indicating that the trades were done with unusually low attachment/detachment points.
via Creditflux
Note: CSO = synthetic CDO