Latest articles from Markets

Crack squads to take care of ALM business

June 6, 2005

Asset and liability management is a growing area for banks and several major players have set up insurance and pensions teams, made up of specialists from a wide range of disciplines. Natasha de Teran reports.
Banks that are feeling sorry for themselves at having to grapple with the minutiae of the impending new capital adequacy framework should spare a thought for the European insurance industry.

Tony Murphy and Joseph Petri

June 6, 2005

Others may doubt that HSBC can punch its weight in investment banking, but the heads of HSBC Securities USA and Global Markets, Americas, tell Geraldine Lambe that HSBC is a work in progress.
In the past year, HSBC has moved from 14th place in the US investment grade debt capital markets (DCM) league tables to number nine.

Derivatives extend the reach of Islamic finance

June 6, 2005

With huge assets under management and a growing population of issuers and investors, the Islamic investment market is being taken increasingly seriously. Natasha de Teran looks at how derivatives are being used to create Sharia-compliant products.

Nowhere to hide for EU savers

May 2, 2005

Individual savings are soon to be taxed without mercy and there will be no escaping it, says Susana Fernández Caro.

8. Which products and/or services are most popular with your ‘bank’ clients?

May 2, 2005

For respondents’ bank clients, FX spot and options products are still the foundation stone of their FX platform.

7. Which client segment (bank, asset manager or corporate) is the largest proportion of your business?

May 2, 2005

Despite the growth of FX as an investment tool and the increased participation of hedge funds in the FX markets, corporates remain the most important and largest client segment for 55.17% of The Banker’s respondents. However, many of the respondents believe that the ground is shifting towards financial institutions business.

6. Is client-related trading growing or diminishing as a share of the business?

May 2, 2005

If prop trading volumes are up, client volumes are growing even faster, according to 77.78% of respondents. For many respondent banks, the increasing number of fund managers treating FX as an investment product, combined with targeted client acquisition strategies by the bank, has meant that a lot of firms have witnessed a substantial rise in client-related trading.

5. Is proprietary trading growing or diminishing as a share of the business?

May 2, 2005

A conclusive 72% of respondents affirmed that, whichever way it is measured, proprietary trading has rocketed as a proportion of banks’ FX business. Whether or not it is growing as a separate business from FX market making or as an adjunct to it, volumes are up and will continue to grow, say most respondents.

4. What FX products are most important in your market or geography?

May 2, 2005

In terms of most important products, spot is still king: 25% of respondents cite it as the most important product, echoing the finds of the BIS report. This is followed by forwards and options in joint second place, cited by 19.64% of banks in the survey.

3. What developments or products would most improve your business?

May 2, 2005

While e-commerce and web-based products may be demanding in terms of investment, they are also cited by 28% of respondents as top of the list of developments that will drive improvements to the quality of the business or directly to the bottom line.

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