Bank of Tokyo-Mitsubishi is studying the possibility of offering Asian clients credit derivative products, such as credit-default swaps, next year from its Singapore office. "There has been some discussion as well as initial studies," noted an official at the bank in the Lion City. "I'm hoping this will happen by the third quarter of next year," he added.
The bank is looking at the products now because liquidity in Asian credit derivatives is increasing and will make the jump if this continues. The official added that BoTM would likely stick to client driven business rather than become a market maker. BoTM currently offers credit derivative products from its Tokyo headquarters but this will be a first for the bank to market the product to the Asian region. A fixed-income marketer in Singapore noted that the fixed-income team would likely incorporate credit derivatives into its product range, doubting that any expansion in personnel would be needed.
