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Derivatives

Thai Asset Manager Studies I-Rate Derivatives Debut

Aberdeen Asset Management Co. in Bangkok, with over THB7 billion (USD162 million) under management, is studying using interest rate derivatives for the first time in Thailand. An official in Bangkok said the fund is studying using baht-denominated interest rate swaps or purchasing structured notes such as inverse floaters for its fixed income operation. "We could be using these in the future," explained the official, noting that after the initial studying phase, Aberdeen could use the products within six to 12 months to enhance yield. Interest rate swaps would likely be used on the back of domestic bond positions, explained the official. The fund has recently started eyeing the products and has not contacted any counterparties. The official declined further comment.

The fund purchased Schroder Asset Management's Thai operation at the beginning of the year and as the integration is now complete, it is now looking to launch additional funds as well as study new products such as derivatives. The official noted that it is looking to start a new fixed income fund in the coming months. Aberdeen primarily invests in corporate debt. Aberdeen's counterpart in Singapore, Aberdeen Asset Management Asia, has also been looking at using derivatives (DW, 10/6).

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