JPMorgan is talking with regulators about offering credit derivatives in local currencies in Korea, Malaysia and Taiwan within the coming months. "We're in the process of investigating what we need to do to offer the products," said Chris Nicholas, managing director and head of Asian credit markets in Hong Kong.
"G-3 credit products have been accepted by investors in a relatively short time frame and this is a natural extension," said Nicholas. He continued that the products will allow investors to take credit exposure without currency risk.
Rival dealer Deutsche Bank has already sold a handful of won-denominated products in Korea and pioneered the Taiwan dollar credit mart earlier this year (DW, 1/26), while traders at Citibank said they have also completed transactions in Korea and Taiwan. Market officials concurred that it will take several months before there is an onshore credit derivatives market in Malaysia.
