The International Commercial Bank of China, headquartered in Taiwan, is looking to market credit-linked notes for the first time. The over-the-counter derivatives will be structured by international firms on behalf of the bank. "We're always looking to offer our clients new products," said Angela Chen, manager of the treasury department in Taipei. She continued that given the current low interest rate environment, ICBC is looking to offer credit-linked notes that offer an enhanced return. Chen predicted it would execute its first trade within six months, adding that it has to educate its customer base first.
The credit-linked notes will likely be structured on both domestic and international names and the typical notional size will be around USD1-2 million.
"We've got over 10 counterparties," said Chen, noting that she is in regular contact with foreign firms in regards to fixed-income products including possible structurers for credit-linked notes. She declined to single out any of the counterparties. The bank will award business based on pricing, the attractiveness of the products and the professionalism of the sales team, added Chen.
