Home-biased Asian investors, especially in the north of the region, have reaped robust rewards from 2017’s equity rally especially on major blue chip tech stocks deeply linked to structural changes in China’s economy.
“This has been a strong year for equity markets, especially in Asia, where bullish sentiment and a focus on tech stocks drove volumes in equity-linked structured products,” says Patricia Lau, head of cross asset derivatives sales for Hong Kong Retail and Asia Pacific ex-Japan, private bank coverage, Credit Suisse. “With volatility drifting at relatively low levels, we saw more correlation products being traded through structures like fixed coupon notes or range accrual notes.”
Despite improved equity sentiments, client concerns over volatility or correction risk persisted, leading to – among other things—demand for partially protected notes, with frothy valuations seeding doubts in investors’ minds, according to Lau.
Credit Suisse’s leading market position as an Asia equity-linked structured product provider is not news and this is the 5th time in a row the Swiss investment bank has won this award, largely on account of its deep shelf of payoff structures, corresponding reference assets and competitive pricing; and in an effort to further distance itself from competitors, Credit Suisse is streamlining its operations to be even more competitive when it comes to execution.
“We continue to strengthen our business to fulfil the growing and increasingly sophisticated needs of our private banking clients in the region,” Lau says. “For example, we are improving our capabilities to support the automation ambition of our private banking partners. This year, we have created a new centralised trading desk for all Asian underliers across Australia, Japan, Hong Kong and Singapore, to create a more streamlined trading book to manage risk. Moving forward, we seek to continue to offer competitive pricing on equity-linked structured products across a wide range of underliers, with speed, scalability and consistency.”
The voters have spoken and Credit Suisse has retained its crown as the Best Provider of Asia Equity-linked Structured Products.