The Royal Bank of Scotland Financial Markets is gearing up to structure synthetic collateralized debt obligations in Asia. "We're getting ready for the first phase," said Anthony Yuen, managing director and Asia Pacific regional head in Hong Kong. He added, "We're still building up."
The move comes on the back of the firm setting up credit derivatives trading desks in Hong Kong and Tokyo last year. The region is waiting for internal approval, which Yuen expects in the next few months.
The firm is looking to complete CDOs as well as more exotic credit products in the coming months, but Yuen declined to comment on specific instruments. He continued that since last year the firm has made key hires, including Brett Clancy, now-Asian head of structuring in Tokyo, from Nomura Securities (DW, 4/27) and former Société Générale professional Tak Leung, Asia ex-Japan head of structured credit product sales in Hong Kong (DW 8/19/02) to bring RBS up to speed in the region. "We want to be in line with what are competitors are offering," he added.
Yuen continued that the bank is also considering hiring additional staff for its structuring effort. "RBS is ready to make additional acquisitions in terms of headcount," he noted, declining to elaborate.
He also explained that the Asian business was not affected by the recent resignations of David Littlewood and David Henriques, global co-heads of structured credit products in London (DW, 7,14). "As far as Asian coverage is concerned, it hasn't been impacted--but I can't comment on the situation in London," said Yuen.
