Singapore's United Overseas Bank is preparing to start a credit derivatives trading business. "Credit derivatives by any stretch of the imagination is currently the most lucrative market," said Harjive Oberoi, head of structured credit in the Lion City. Oberoi recently joined the bank from HSBC, where he was the head of structured credit trading in Hong Kong, to spearhead the initiative. While interest rate and particularly fx products have become commoditized, credit derivatives still offer good margins, he explained.
UOB is now putting systems in place and getting final internal approvals and will likely begin trading in the next month or so. Oberoi noted the firm will transfer credit traders internally while looking to the market to recruit credit structurers.
UOB has managed synthetic CDOs (DW, 11/19) and already distributes credit products structured by other houses to its retail base.
