Deutsche Bank is shifting from cross-product structuring to asset-class-specific units in Asia. The firm combined its equity and fixed-income businesses around a year and a half ago in the region, following a trend at other global firms, but Deutsche Bank appears to be the first to separate out its structuring desks again.
As part of the move, the firm's relative value group, which specialized in cross-asset class products, has been disbanded. Separate asset-class desks including equity, credit and rates, are being established and will report directly in to the trading units. "As P&L is generated by trading, they're being given closer control over structuring," said a market official. Firm insiders said cross-product marketing units will remain intact and joint ventures will be established between desks for hybrid product offerings. Loh Boon Chye, head of global markets for Asia in Singapore, who is said to be overseeing the reorg, did not return calls by press time.
The firm is also said to be retooling its structuring desk in part to take advantage of growing opportunities in the resurging Asian equity markets. Deutsche Bank appointed Colin Fan as head of equities in Hong Kong late last year to oversee a build up on that side of the business (DW, 10/7). The new organization is still being ironed out and is expected to be finalized in the next few months. It could not be determined if a similar move is on the cards in Europe and the U.S.
