The Dutch pension asset manager's Asia Pacific head of real estate says his team has just had one of its busiest years ever and that 2021 is looking similarly promising.
With NSDL, the memorandum of understanding, which was signed by both parties in Mumbai, will forge closer ties between the two organisations and comes less than a month after the New York-based DTCC signed a similar deal with the China Securities Depository and Clearing (SD&C).
Under the MOU, the DTCC and NSDL will establish a forum for senior management and staff of both organisations to meet regularly to exchange information on exchange market updates and business operating models. The relationship will also help the NSDL in better understanding the global trends in clearing and settlements.
More importantly, the MOU is timely for the Indian depository, which is currently feeling the heat of the demutalisation of the Bombay Stock Exchange (BSE), which owns 37% of NSDL and plans to accept bids from interested parties to set up a clearing corporation.
The same can also be said for DTCCÆs MOU with the CDSL. Like the NSDL, this Indian depository is also 37% owned by the BSE and is also on auction block. A similar information sharing and cooperation agreement has been forged between this depository and the DTCC.
The respective signings have also led some to believe that the DTCC could be interested in picking up a stake in one or both Indian depositories. Recent Indian regulations have stipulated that foreign players can now acquire up to 26% in stock market infrastructure companies like depositories, which are prompting these rumours. However, both Indian organisations have denied this was the driver behind the MOUs.
The relationship between the DTCC and the two depositories is expected to have benefits from the New York-based organisation. In particular, those close to the deal believe that the DTCC could leverage off the legacy software systems of the NSDL and CDSL.
The two signing come less than a month after the DTCC forged a deal with the SD&C. Under this MOU, both parties agreed on an exchange and cooperation arrangement which will include undertaking a cooperative effort on securities and clearing matters, promote cross-border investment and share operational information.
Mega players Nippon Life and Dai-ichi Life are looking for opportunities in higher-yield single-A US corporate bonds, which offer more appealing yields than stagnant domestic offerings.
The “lower for longer” monetary policy and stimulus packages, coupled with the rolling out of vaccine programmes favorably support real estate investing in the region, with offices and data centres presenting forward-looking opportunities.
As US fixed income default rates rose and yields fell during the pandemic, are Asian bonds, which have had more stable yields through 2020, looking more attractive?
Insto roundup: Norway's Oil Fund praises China governance efforts; NPS commits $100m to taxi-hailing app
Norway's Oil Fund welcome Chinese proposals improving transparency and shareholder protection; HK's MPF assets surge 35% year on year; Korea's NPS commits $100m to TPG consortium to invest in taxi-hailing app; Poba commits W270bn to European property; Malaysia's EPF sees investment income rise 59% year-on-year in first quarter, and more.