Lender eyes minority stake on fund to benefit from distressed debt, bonds, leveraged debt in Asia-Pacific.
Singapore's DBS will invest up to $150 million in a fund being launched by Hong Kong-based Myo Capital that will pick distressed debt in Asia-Pacific excluding Japan, the two companies said on Tuesday.
DBS Asset Management has also agreed to take a minority stake in Myo, they said.
"We estimate over the next three years, there's going to be up to $200 billion of opportunities we can look at in the Asia-Pacific region," Justin Ferrier, managing director of Myo Capital Advisers, told Reuters.
Ferrier said the opportunities will be in distressed loans, bonds as well as leveraged debt in developed markets such as Australia.
"We will also look at primary and secondary special situations which are private lending transactions," he said.
The financial crisis has affected a number of people, resulting in fewer participants in illiquid credit markets.
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