Mitsubishi UFJ Asset Management Co. will launch its first fund comprising collateralized loan obligations, heeding the government’s call on finance firms to offer products that boost returns for Japanese investors.
The securities, which are bundled leveraged debt, will mainly hold dollar-denominated floating-rate loans made to US companies. The unit of Mitsubishi UFJ Financial Group Inc., Japan’s biggest bank, aims to launch the fund in January with a size of several billion yen, according to Kosuke Nagata, general manager of the firm’s credit investment division.