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 this partnership, the KSD û which is the central securities depository for Korea û has signalled its intention to encourage Korean investment managers to adopt a more automated workflow, based on global best practice.
KSD will partner with Omgeo to offer a service bureau that will transform Korean cross-border trade processing into a role model of operational efficiency.
The service bureau will offer automated trade matching and processing using OmgeoÆs solutions. Through Omgeo Central Trade ManagerSM (Omgeo CTM) and Omgeo ALERTSM, KSD will enable Korean investment managers to electronically confirm the accuracy of trade details with their counterparties around the globe and automatically enrich them with standing settlement instructions.
Omgeo CTM is a single platform for the central matching of fixed-income and equity trade details, while Omgeo ALERT is a web-based global database for the maintenance and communication of standing settlement and account instructions.
Plus, Korean investment managers will be able to receive a copy for information of matched trade details from any interested third party. The KSD and domestic Korean investment managers will thus gain access to OmgeoÆs global network of trade counterparties. Omgeo provides certainty and confidence in post trade operations in cross border and domestic markets across the globe.
Do-Yeal Lee, managing director of the KSDÆs deposit settlement service division, says this partnership allows Korean asset managers to join OmgeoÆs worldwide community of clients, ôthereby reducing operational risks and improving efficiencyö.
With the partnership, the KSD will also be geared to have the combined straight-through processing infrastructure of domestic and cross-border trading to support seamless processes within the Korean fund management community.
ôReducing operational and counterparty risk through automation are key ingredients for the future growth and success of the Korean securities market,ö says Lee.
For his part, Tim Keady, managing director for global sales and relationship management for Omgeo, says the firmÆs relationship with depositories around the globe is vital as it enables its clients to gain true end-to-end automation and realise the benefits of risk mitigation in the middle and back offices.
Omgeo maintains strategic partnerships with and links to securities depositories around the world, notably the Depository Trust & Clearing Corporation in the US (also one of OmgeoÆs parent companies), the Canadian Depository for Securities and the Japan Securities Depository. In addition, Omgeo has entered discussions with the Brazilian Clearing and Depository Corporation.
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?
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