Rabobank enters Asian fund derivatives market

Rabobank has launched a four-strong Asian fund derivatives team in Hong Kong, aimed at providing Asian investors with structured fund products that are insulated against some of the risk of a sudden downturn.

Boon Yong Leo, Xavier Ducros and Janice Leung will work in the team, led by Yin Wu, who transferred from the bank's London office in June. Boon joins from Rabobank's Tokyo non-standard products desk, Ducros was previously head of structured solutions at HSBC and Leung was a member of the Bank of Montreal's model risk and vetting team.

Wu said the team "expects to close a number of interesting deals this year".

Most of the products will be based on European or US funds, Rabobank said, and will be similar to products already developed by the bank's main fund derivatives team in London. Wu also hopes to develop derivatives of Asian funds for the local and European markets. Leveraged and pass-through products will be developed, but the bulk of the market will be in principal-protected products, the bank said.