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Morning Coffee: The new financial instruments set to drive growth at Singaporean banks

bonds

The first ever covered bonds issued in Singapore could hit the market in the middle of this year – and in the longer term they could help drive business expansion (and new hiring) at the three local Singaporean banks.

The Monetary Authority of Singapore (MAS) has now finetuned its guidelines for the issuance of covered bonds – debt instruments secured by a pool of assets, primarily residential mortgage loans – in the city state, reports The Business Times. MAS set out rules for covered bonds almost a year ago, but the first deals were delayed as the regulator resolved issues related to the country’s Central Provident Fund.

DBS, OCBC and UOB may issue more than S$10bn in covered bonds combined during the next three years, Colin Chen, DBS head of structured debt solutions, told Reuters. Kevin Wong, chief technical strategist for Asia at City Index, said in the same article that issuing covered bonds would help fund the future expansion plans of the local banks Share on twitter.

Much of this business and recruitment growth will occur outside of Singapore, however. All three banks have stated their intention to expand in Southeast Asia and beyond, in particular into China and India. DBS announced last month, for example, that it was helping to set a consumer finance company in China.

Meanwhile:

Deutsche Bank has cut the bonus pool at its securities unit by about 4%. (Bloomberg)

UBS is hiring former ING executive Eli Leenaars as vice-chairman of its private bank. (Reuters)

Wanted: finance professionals in Singapore who can write in plain English. (Straits Times)

30 senior executives from OCBC work with an orchestra to improve their leadership skills. (Asia One)

A step-by-step guide to getting an employment pass in Singapore. (Wall Street Journal)

Training and development won’t land you a pay rise in Singapore, says new survey. (Asia One)

DBS launches programme to help tech startups in Singapore. (Straits Times)

Former UOB relationship manager jailed for unit-trust scam in Singapore. (Straits Times)



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