This week, the focus has been on high-profile staff departures at major banks. In other news, Goldman Sachs has launched structured notes to clients seeking exposure to SPACs.
Edward Ho has joined Leonteq as managing director and head of Asia, according to an internal memo seen by SRP. Subject to regulatory approval, Ho will be the manager in charge with overall management oversight for Hong Kong SAR, effective 1 January 2022.
Based in Hong Kong SAR, Ho will report to Alessandro Ricci as head investment solutions and member of the executive committee. As head of Asia, Ho will be responsible for coordinating the Swiss firm’s activities in Hong Kong SAR, Singapore and Japan.
The issuance amount of derivative-linked bonds (DLB) has reached a new low in Q3 21 since 2020, while derivative-linked securities (DLS) continue downward trend. DLB sales in South Korea declined by 28.7% to KRW1.8 trillion (US$1.5 billion) in Q3 21 quarter-on-quarter (QoQ), or down 59.3% year-on-year (YoY). In the meantime, DLS sales declined by 26.1% to KRW1.2 trillion QoQ, or down 31.4% YoY along with falling issuance. Both DLB and DLS posted a record low issuance at 198 and 163, respectively, according to the latest report from the Korea Securities Depository (KSD).
Simon Karaban, head of index services at the Singapore Exchange (SGX), has left the exchange after almost nine years. He joined SGX in March 2013 and led the development and launch of the SGX Index Edge index business and the introduction of new indices and index services for global clients. This includes the exchange’s SGX Thematic Indices, a suite of equity indices under its index business.
Credit Suisse has not found a replacement for its former head managed solutions Apac and head products Singapore, Rodolphe Larqué, who left in late August to join UBS alongside Nicola Pantone as co-heads of UBS Global Wealth Management Capital Markets in Asia Pacific. Larqué’s responsibilities are being held on an interim basis by Benjamin Tan, a managing director Asia Pacific, based in Singapore in addition to his product lead role.
Another high-profile departure has seen Neven Graillat, head of sustainable investment solutions, global markets, at BNP Paribas, part ways with the bank. He was appointed to this role in 2013 and was put in charge of the bank’s investment solutions structuring team which covered sustainable and responsible investment product innovation for its European distribution network as well as responsible finance for multilateral development banks.
Goldman Sachs Group has sold ‘a few structured notes’ to clients seeking to gain geared exposure to special purpose acquisition companies (SPACs), to capitalise on increasing activity on the market trend, SRP has learnt. The two-year SPAC-linked structured notes offer a payout referenced to a basket of discounted SPACs and have been issued under the Rule 144A which provide many structured note offerings with exemption from the Financial Industry Regulatory Authority's (Finra) Rule 5123, relating to private placements and the requirement for registered documentation.
In France, Eric le Brusq has joined Paris-based quantitative asset management boutique LFIS Capital as head of structured investment solutions, a newly created position to lead the firm’s expansion into the design and distribution of structured investment solutions. Le Brusq will report to Arnaud Sarfati, LFIS’ chief executive and former sell-side equity derivatives banker. Sarfati spent 15 years with Société Générale Corporate & Investment Banking (SGCIB) in a number of senior roles including head of engineering, equity derivatives, Europe and co-head of the cross-asset solutions division.
Hedios collaborated with BNP Paribas for the launch of H Performance 40 in France. The 12-year Athena autocall is subject to annual early redemption if the underlying S&P Euro 50 Equal Weight Synthetic 5% Price Index closes at or above 110% of its initial level. If the knockout is triggered, the product offers a bonus coupon of 40%, plus a coupon of three percent for each year elapsed. The product has a soft capital protection barrier of 30%. It is listed on the Luxembourg Stock Exchange.
Société Générale has reported revenues of €6.7 billion in the third quarter of 2021, up 14.9% compared to the same quarter last year. The increase was driven by growth in all the businesses, in particular global markets, financial services and financing & advisory. In global markets & investor services, net banking income totalled €13 billion, up 8.4% from Q3 2020. The business posted revenues of €814m in Q3 2021, up 53% compared to the prior year quarter. Volumes were particularly high on investment solutions products, with high demand from clients for both structured products and listed products.