Best Private Bank – Fixed Income Advisory
HSBC Private Banking
regional head of FICC, Asia, HSBC Private Banking
We are thrilled to be named Asian Private Banker’s Best Private Bank for Fixed Income Advisory. In 2019, our team was able to capitalise on the strength of HSBC Private Banking to successfully navigate challenging market conditions. This is a clear testament to our human capital investment in the past year by bringing on senior professionals from investment banks and asset management firms to strengthen and extend our lead in the market. Our unique and proprietary investment analysis approach continue to help us guide our clients to achieve outperformance in investment returns. We are proud to be serving this key element of our clients’ portfolios as an important part of our industry-leading private bank in Asia.
The fixed income market in 2019 was overshadowed by geopolitical risks, US-China trade tensions and an inversion of the yield curve. With significantly volatile price movements driven by these events, HSBC Private Banking’s fixed income team went from strength to strength, actively advising clients to move ahead of the markets and rebalance their bond portfolios accordingly.Worth mentioning, HSBC’s Asia Focus List got expanded to 3,500 bonds in 2019 from 2,800 previously, in various currencies across different regions. Independent from the bank’s global research team, the fixed income desk has credit lines with over 50 different counterparties, ensuring it can source liquidity and find best execution for clients on its open architecture platform. In 2019, not only did its high conviction bond list post zero default events, but over 75% of the bank’s high conviction trade ideas outperformed their respective index benchmarks, as the bank stringently selected and actively monitored the high conviction names.
HSBC’s franchise as a fixed income house is well established. Beyond secondary market trading and execution, its participation in bond IPOs and private placements is well recognised. In 2019, HSBC accepted market or limits orders and kept clients informed on the deal progression in a timely manner, helping them gain exposure in the primary bond market. For clients interested in making a sizable placement with a specific issuer, the bank collaborated with its investment banking arm and external counterparties to engage directly with issuers and originate private placement subscriptions.
Additionally, the bank’s bond borrowing and lending programme enabled investors to enhance their income by receiving a lending yield while still retaining the economic benefits, such as coupons and corporate actions. In a year with increased uncertainties, this strategy kept gaining traction among clients.
A robust business performance, as a result, undoubtedly came parallel with the bank’s best in class fixed income recommendations and platform enhancement. Worth highlighting, in 2019, HSBC’s fixed income business recorded a 30% growth in net AUM, and primary turnover for single line item products grew by a significant 181%.
HSBC Private Banking is Asian Private Banker’s Best Private Bank – Fixed Income Advisory.