HSBC plans to enter the interbank credit derivatives market in Hong Kong in the next few months to meet growing customer demand, according to an official.
"We've put more resources into the product," said Anita Fung, director, head of fixed income and derivatives, Asia-Pacific in Hong Kong. "Momentum is picking up," she added. As part of the effort HSBC recently hired Medes Ma, an associate in the derivatives counterparty credit exposure management department at J.P. Morgan in Tokyo, and has brought over Naveen Choppara, trader, Asian local currency debt trading, from HSBC's Mumbai office. Ma said it's an interesting and challenging opportunity to develop the credit derivatives desk. Choppara said he moved to Hong Kong because it's a larger market, with a greater number of complex products.
Both report to Wick Veloso, head of Asian local currency debt trading. Veloso said HSBC is now able to offer a complete range of investing and hedging instruments.
Fung declined to comment if the firm would use credit instruments to hedge HSBC's own exposure.
