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When Kurt Ersoy began working for Credit Suisse's Asia equity derivatives desk in Hong Kong in 1995, he was tasked with focusing on futures, corporate derivatives and convertible bonds. But that's changed. In 2000, private bank clients began looking to simple transactions with derivatives attached to get yield, with some capital protection. This flood of money from high-net-worth individuals created a 'big bang' effect on the Asian industry, says Ersoy, Credit Suisse's head of derivatives marketing, Asia-Pacific. "In 2000, we had five people covering structured products, but this has doubled in the past few years."

Equity structured products are booming in the region. Estimates on overall market size range from US$10 billion to US$30 billion, as retail and private banking investors try to beat equity performance or take advantage of liberalizing markets. The competition has led to banks fighting even harder to grab a piece of the action, writes Richard Morrow.

Talk to people in the derivatives market about equity-linked structured products, and Société Générale Corporate & Investment Banking's (SGCIB) is the first name they mention. It's testament to the team's successful marketing efforts, which are now led by Nicolas Reille and Wilson Lee, both co-heads of Asia ex-Japan structured products and equity derivatives. SGCIB's reputation is down to a well-trained sales force and a team of 10 smart innovators based in Hong Kong, headed by Pierre Le Pape. "I don't know of any bank that has a higher number [of dedicated financial engineers] in Asia," Reille says.

Up until 2002, UBS' equity derivatives business covered only corporates, institutional investors and a tiny number of very wealthy individuals. So when demand from retail and private banks began growing, the Swiss bank needed a bigger team to cover the burgeoning market. Enter Min Park, who was hired in 2002 to cover equity risk management products from Merrill Lynch, where he had structured and marketed equity derivatives products. He was soon followed by his old colleague at Merrill, Christopher Lee, who joined in August 2002, and also Laurent Combalot from Credit Agricole. Park was tasked with making UBS a market leader in retail equity structured products, and the growth in the banks' business in the three years since is testament to his success. "Our team began to focus on derivatives in 2002 and we now have over 40 people focusing on equity derivatives trading and sales," Park notes. He was promoted head of equity risk management products in 2004.

While Japan and Australia continue to drive the Asia mergers and acquisitions market in terms of both volumes and value, China is grabbing most of the attention.

BHP Billiton's all-cash purchase of WMC Resources and Tattersall's A$2.2 billion IPO catch the eye in ASIAMONEY's Australia deals of the year.

Many firmly believe the yellow metal is a powerful hedge against potential disruptions on a global scale. But with prices at 25-year highs, the question must be asked: will it prove to be a magnet for fools? Mark Johnson reports.

The year's biggest global IPO in Hong Kong, the creation of the first Chinese global brand, Thailand's first ever CMBS securitization and a Malaysian IPO 39 times oversubscribed: 2005 was crammed with memorable transactions. Asiamoney presents the best deals of the past year.

Many credit investors are enamoured with 'Indonesia, the Story', due to both a stronger economy and more transparent political leadership, and the almost universal belief that ratings agencies Standard & Poor's and Moody's will upgrade the country later this year from B1/BB-. Moody's says that its current positive outlook is "based on increased political stability, progress made in asset sales, improved (but still weak) external liquidity, and fiscal performance". An upgrade is contingent on the government under President Susilo Bambang Yudhoyono being able to implement ambitious reforms designed to improve the investment environment.

Indonesia aspires to become a regular international borrower, and it is aiming to launch a new sovereign bond this month. But a combination of bad luck and a complicated bookrunner selection process has hurt the performance of its previous deals, and could yet impact future ones, writes Nick Parsons.

Last year was a busy one for Asia's headhunters, with investment banks, hedge funds and private equity groups filling out positions in Japan, China, Korea and Taiwan. The year ahead looks equally good, with India, Indonesia and Singapore the plum hunting grounds, says Anna-Louise Hinde.

Bank of America is waiving assignment fees for lenders and agents trading B of A-led loans.