Standard Chartered Bank is developing an asset-backed securitization business in London and Hong Kong through which it aims to execute deals in Asia and emerging Europe, the Middle East and Africa (EMEA). Noel Edison, head of asset securitization for EMEA and South Asia, says the ABS push is part of the bank's overall strategy to build out its fixed-income platform. Edison says the bank has traditionally been very active in consumer and commercial banking in emerging markets and now these markets have matured to a point where securitization is viable.
The bank will focus on residential and commercial mortgage-backed deals, auto loan and credit card securitizations as well as future flow deals. It intends to execute deals in local currencies, dollars and euros. "We are optimistic that we will be in a position to close our first transactions in India, Turkey, and Malaysia in the coming months," says Edison.
Standard Chartered is also looking at its own balance sheet and intends to securitize assets for capital relief purposes, says Edison. In addition, it is exploring the idea of establishing an asset-backed commercial paper conduit to warehouse a variety of assets pending capital markets distribution, as well as serve as an investment vehicle for certain ABS deals it will be investing in to "term," or maturity.
Currently, Standard Chartered has five members on its ABS team. Martin Essenberg, global head of ABS, and Edison are based in London. Warren Lee, head of ABS for Asia, Lesi Zuo, director, and Kenneth Kwan, associate, are based in Hong Kong. All five joined from Bank of America last month. Edison says the firm is looking to add three to five bankers in London and one or two in Hong Kong.