Bank of America is preparing to enter the domestic Taiwan dollar credit derivatives market in the coming months. "This will be a major focus for us next year," said Joey Wang, treasurer in Taipei.
Wang said the firm will concentrate on yield-enhancing instruments, such as first-to-default baskets, for local financial institutions. This is part of the firm's wider push into Asian credit derivatives. As part of that it completed its first synthetic collateralized debt obligation in the region, a USD1 billion managed deal for Singapore's United Overseas Bank in April.
"More Japanese end users are getting comfortable with the product," said a trader at a bulge bracket house.