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Banks Chase Risk as Policy Makers Pull Back
February 9, 2010
Even as governments around the world continue steps to rein in risk, banks across Asia are showing a new willingness to gamble.
In recent weeks, Bank of America Merrill Lynch has hired a head of Asia ex-Japan private equity, as well as a head of derivatives sales and a head of exotics trading from rival banks, all in newly created positions.
Deutsche Bank in mid-January announced a new position for a head of residential mortgage-backed securities for the Asian-Pacific region. It appointed Sal Mirran, who most recently ran corporate strategy for Fannie Mae in Washington, to build a local mortgage origination and risk-management platform across Asia, Japan and Australia.
Meanwhile, banks around the world are pressing clients old and new to rediscover riskier investments such as convertible bonds and derivatives.
"The lack of trend and the falling volatility among all asset classes is incentivizing investors to take more risk to generate return, as they don't expect large upside movement nor large downside movement in the current context," said Marc Saffon, head of financial engineering at Société Générale.
Original Posting At: WSJ
In recent weeks, Bank of America Merrill Lynch has hired a head of Asia ex-Japan private equity, as well as a head of derivatives sales and a head of exotics trading from rival banks, all in newly created positions.
Deutsche Bank in mid-January announced a new position for a head of residential mortgage-backed securities for the Asian-Pacific region. It appointed Sal Mirran, who most recently ran corporate strategy for Fannie Mae in Washington, to build a local mortgage origination and risk-management platform across Asia, Japan and Australia.
Meanwhile, banks around the world are pressing clients old and new to rediscover riskier investments such as convertible bonds and derivatives.
"The lack of trend and the falling volatility among all asset classes is incentivizing investors to take more risk to generate return, as they don't expect large upside movement nor large downside movement in the current context," said Marc Saffon, head of financial engineering at Société Générale.
Original Posting At: WSJ
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