Standard Chartered is setting up a credit derivatives operation in Asia and will commence trading within weeks, said Debbie Min, head of structured asset solutions for global markets in Singapore. "We are leveraging off our existing fixed income business to provide further depth to the bank's product capabilities and therefore, tailored solutions it can offer to our customer base." She described the move as part of the bank's overall effort to increase its presence and capabilities in the Asian capital markets.
Despite being a relative late comer to the Asian credit market, StanChart believes it can carve out a niche based on its historic strength as an emerging markets player, Min continued. She plans to hire traders, structurers and marketers.
StanChart will offer credit default swaps, total return swaps, credit-linked notes, basket trades and other structured products which may be useful to clients as techniques for managing a variety of risks, said Min. She mentioned that the team would look at credits across the entire region, including Japan.
A credit derivatives trader at a rival firm in Hong Kong believes Standard Chartered can succeed in the growing Asian credit market. "There's still room," he said, adding that local investors are becoming increasingly comfortable with credit products and are using such instruments in search of higher yield.
