Bangkok--6 Sep--Moody's Investors Moody's Investors Service says that Asia (ex-Japan and Australia) may see some innovative derivative deals emerging in the coming months despite some signs of uncertainty in the region's markets. "Already in August, Moody's had rated a constant proportion debt obligation or CPDO issued by Aphex Pacific Capital," says Dominique Gribot-Carroz, a Moody's AVP in Hong Kong and the author of a new report which reviews 1H07 and examines the outlook for 2H07. "This first deal is very encouraging news, given recent developments" she says. "If we see more CPDO structured in Asia, Asian issuance is likely to follow European trends towards more managed and bespoke transactions." "And depending on investor appetite for new products offering higher yield, new CCO, Collaterized Foreign Exchanged Obligations (CFXO) and innovative hybrids could be structured in Asia in the near future," adds Gribot-Carroz. Looking back at 1H07, single tranche synthetic arbitrage structures continued to enjoy popularity among Asian investors, and many were privately placed managed transactions. Like last year, Moody's also rated a new Balance Sheet CLO originated by Standard Chartered Bank. At the same time, Constant Proportion Portfolio Insurance (CPPI) deals with a Moody's principal only rating were issued. In 1H07, another innovative derivative product, a Collateralized Commodity Obligation (CCO), was structured in Asia. The regional derivatives report is being released in conjunction with structured finance reports for Korea and India, a combined report for China, Hong Kong and Taiwan, another combined report for Singapore, Malaysia, Thailand and Indonesia, and a report summarizing structured finance developments in the entire region.