BNP Paribas and SG Corporate & Investment Banking have started more actively pitching derivatives to Korea customers, according to rival bankers. One competitor said, "They've never been active in this market before, but now they seem to have made a real commitment."
Henry Pang, head of equity derivative sales at BNP in Hong Kong, said, "We're now covering the Korean market proactively." The firm recruited a marketing team at the onset of the year to cover the growing market. Pang said popular instruments have included two-stock worst-of notes on domestic names with a one-year maturity. Such instruments are distributed via locally-based banks and securities houses. "Investors in Korea, as in other Asian markets like Hong Kong and Singapore, are looking for short-dated yield-enhancing ideas," noted Pang. Laura Schalk, spokeswoman at SG in Hong Kong, did not comment by press time.
