DBS establishes structured debt solutions and securitization capability

Unit set up makes DBS the only Asian bank to offer advice and solutions in the industry, which is seeing keen interest from customers across the region.

DBS Bank, which is investing S$250 million over the next five years to grow its Treasury & Markets (T&M) business in the region, said its newly set-up structured debt solutions capability is seeing keen interest from Asian customers interested in identifying funding alternatives as well as seeking options to optimise their capital structure and balance sheets due to impending regulatory changes such as Basel III.

DBS set up the structured debt solutions capability in July 2010 in anticipation that the market is expected to grow as economic and market conditions improve. Regulatory changes and reform will also drive the growth of the business. The establishment of this team within T&M makes DBS the only Asian bank offering advice and solutions in the structured debt and securitisation space.

Said Colin Chen, Head of Structured Debt Solutions, T&M: "As an Asian bank in the structured debt space, DBS has unique strengths. We understand Asia and the needs of our Asian clients. This allows us to provide bespoke structured solutions that can address Asian risks. In addition, DBS is able to leverage its entire T&M franchise to provide seamless solutions delivery to our clients; from origination and structuring, currency and interest rate hedges to sales and distribution.”

Asset securitisation can benefit companies by creating regulatory capital efficiency, as in the case of financial institutions, and improving their return on equity. Outside the banking industry, there is also renewed interest in securitisation as this presents an alternative fund-raising avenue for corporates and institutional customers, according to a DBS report.

At the two-day "DBS Asia Markets Conference" held at Marina Bay Sands Expo and Convention Centre in Singapore on 21 – 22 March 2011, DBS shared market insights, investing ideas and solutions which would enable corporate clients to strategically fund and position their businesses to best participate in growth across Asia.

These include solutions in the structured debt, commodities derivatives and offshore RMB space. The conference also highlighted hedging products and solutions provided by DBS, which can help clients lock in gains and reduce volatility through the business cycle and against unforeseen events. The conference was well attended, attracting over 200 corporate customers from Singapore, Indonesia, India and South Korea. 

Said Andrew Ng, Head of T&M at DBS: "With the rise of Asia and Asia corporates, our customers are increasingly looking for advice and more sophisticated solutions to support their growth in the region. One of DBS' strategic priorities is to build a leading regional T&M franchise and to increase customer cross-sell in the space. Through the DBS Asia Markets conference, our annual flagship client networking event, we will showcase our leading Asian Treasury products and solutions as well as proprietary market insights."

DBS T&M is involved in the trading of foreign exchange, interest rates, equity, credit, fixed income instruments and the provision of investment and risk advisory services. It has a geographic presence in Singapore, Hong Kong, China, India, Indonesia, South Korea and Taiwan.

In 2010, T&M recorded revenues of S$1.9 billion, up 12% from the previous year, as cross-sell of T&M products to the bank's institutional, private banking and mass affluent clients gained momentum.

DBS is consistently recognised for the strength of its T&M franchise. Accolades won in 2010 include "Regional House of the Year" and "Singapore House of the Year" by Asia Risk, "Best Derivatives House in Singapore" by The Asset, "Award for Treasury and ALM Products and Services" by The Asian Banker and "Best Foreign Exchange Bank in Singapore" by FinanceAsia, Asiamoney and Global Finance.