National Bank of New Zealand, one of the largest domestic banks in New Zealand with over NZD36 billion (USD17 billion) in assets, is studying offering credit derivatives to its clients for the first time. "Like everybody else we've been looking at it," said Paul Daley, head of capital markets at the National Bank in Wellington. While he confirmed that the bank is actively considering offering credit products, Daley declined to elaborate on types of instruments or comment on a specific timeframe.
As liquidity in Kiwi-referenced credit-default swaps continues to grow, albeit at a moderate pace, more end users, including BNZ Investment Management (DW, 8/4) and Guardian Trust Fund Management (DW, 6/16), have started looking at using credit derivatives.
