Singapore-based OCBC Bank is preparing to start marketing structured notes for the first time in the coming weeks. "We'll have something out in the next few months," said Yap Tsok Kee, v.p. of global treasury. OCBC has been looking at offering exotic derivatives for sometime (DW, 11/11) and started marketing interest-rate options earlier this year. The exotic products will include range accruals, barrier options and callable notes.
"There is growing customer demand for structured notes," said Yap, adding that more end-users in Singapore have started buying the products as a way to enhance their yield and reduce funding costs. Yap added, "Ideally, we'll likely start with one or two deals per month and a few months after that handle one or two per week."
OCBC is making the move now because it has completed the integration with Keppel Capital Holdings and David Connor, who joined recently as ceo from Citibank, has settled in and prepared his strategy for the bank's operation.
