Wednesday, November 29, 2017 Stamford, CT USA — The mood among fixed-income dealers in Asia is decidedly upbeat. Trading volumes are on the rise—fueled by strong flows in G3-denominated Asian bonds, new issuances and growth in flows in local currency markets and a surge in business from China. Together, these trends are prompting banks to enter growth mode in Asia.
In this increasingly positive environment, Citi retains its role as the top overall bank for Asia (ex-Japan) fixed-income. HSBC and Citi are statistically tied at No. 1 in overall Asia (ex-JANZ) fixed income, followed by J.P. Morgan and Bank of America Merrill Lynch, which are statistically tied for third place, and another tie for fifth between BNP Paribas and Standard Chartered Bank.
“The story of 2017 is that banks around the world are again looking to Asian fixed income as an important growth market,” says Greenwich Associates Managing Director James Borger. “This includes not only the names you’d expect, but also European banks that retrenched in past years and are now eyeing expansion, Japanese banks like Nomura and Mizuho that are fully committed to the region, and relative newcomers like Wells Fargo.”
“In 2017 Citi has continued to grow market share with its key clients across Asia Pacific and is the No. 1 dealer in fixed income across the region for the second straight year, reflecting the firm’s long-standing commitment to the region. The bank gained market share across all investors, and Citi was ranked first for G3-denominated Asian bonds, G10 investment-grade credit and interest-rate derivatives,” observes Borger.
“When it comes to quality of service delivered to investors, HSBC is the leader in Asia,” says Greenwich Associates Vice President Parijat Banerjee. HSBC claims the title of 2017 Greenwich Quality Leader in Overall Asian Fixed-Income Service, Sales and Trading. In Credit products, HSBC shares the title of 2017 Quality Leader with Citi, and is one of four Greenwich Quality Leaders in Asian Rates, along with Citi, Bank of America Merrill Lynch and J.P. Morgan. Nomura Securities is the 2017 Greenwich Quality Leader in Asian Fixed-Income Research.
Bond Connect Fuels China Growth
China’s new Bond Connect platform opened up parts of the Chinese fixed-income market, and this new access is helping to fuel the growth of Asian fixed income overall. This activity is giving a boost to firms like Citi, HSBC, Standard Chartered, BNP Paribas, and other established leaders with the corporate banking relationships needed to participate in the new issues that drive subsequent trading volume. “Some banks are more bullish, and some are more skeptical, but everyone is paying attention,” says Banerjee.
2017 Australian/New Zealand Fixed-Income Greenwich Leaders
Australia’s fixed-income market is starting to find its new footing, following much-publicized restructurings among some of the country’s major banks. One of the biggest outcomes of that shakeup has been a renewed focus among these leading banks on their domestic market.
Amid these shifts, ANZ Bank has retained its position at the top of the list of 2017 Greenwich Share Leaders in Overall Australian/New Zealand Fixed Income. In the second spot, Citi and UBS are tied with National Australia Bank. “Over the past 12 months, National Australia Bank has notched significant gains in market share in both Rates and Credit products,” says Borger. “Among global banks, Citi has made significant progress in this market over the past year as well.”
The 2017 Greenwich Quality Leaders in Overall Australian/New Zealand Fixed-Income Service are Citi and Commonwealth Bank of Australia. The same two banks claim that title in Australian/New Zealand Fixed-Income Research. In Australian/New Zealand Fixed-Income Sales, the 2017 Greenwich Quality Leaders are ANZ Bank, Citi, Deutsche Bank, and Westpac Banking Corp. In Fixed-Income Trading, Citi and Commonwealth Bank of Australia are joined by J.P. Morgan and Australia National Bank as 2017 Quality Leaders.