The UK bank’s shutdown of its equity derivative and convertible bond divisions seems unlikely to have major implications for the investment industry.
The firm's regional head of sales, Charmian Wan, says Asian institutions are looking at less traditional fixed-income plays such as convertible bonds for the first time.
With credit hard to come by and stocks looking cheap, Asian convertible bond issuance may be set to increase, says Skander Chabbi of BNP Paribas Investment Partners.
Fast-growing firms in Asia have stepped up issuance of convertible bonds, which often perform well in a rising interest-rate environment, notes Edmond de Rothschild AM.
Fund management companies are increasingly eager to tap into renewed investor interest for convertible bonds in China.
The Asian convertible-bond market is still struggling to attract interest from new types of investors, despite a strong performance last year and a healthy pipeline of issues due in 2010.