When it comes to treasury operations in Asia, DBS Bank’s Treasury & Markets business includes everything from structuring, trading, credit, securities, bonds, equity, derivatives, commodities, sales in foreign exchange, money market, and interest rates.
The Treasury Department is one of the most prominent departments in a bank, which is mainly entrusted with the job of practically managing its assets and liabilities. The treasury department’s responsibility is to develop several financial models that aid in predicting the revenue the bank will earn under different economic scenarios.
It is also the responsibility of the treasury department to correctly forecast how vulnerable this non-interest revenue is to external events like fluctuations in the rates of interest.
The vital data compiled by the treasury section is handed over to decision-makers to decide on the types of assets the bank should deal with. These become the lending goals that the employees are required to achieve. The bank also avoids using specific types of deposit obligations depending on the information it receives from the treasury. Therefore, the treasury department has a significant impact on the bank’s credit sanctioning and deposit-taking operations.
Bank’s treasury operations are closely controlled. They are in charge of communicating with regulatory bodies about maintaining reserve and capital adequacy levels, for they are in control of such matters. Furthermore, the treasury is also in charge of having a specific percentage of highly liquid government securities in its portfolio.
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Major T&M Solutions Offered by DBS for Hedging and Funding
DBS, a major player in several regional markets, employs 600 Treasury & Markets experts to provide clients with hedging, financing, and investing in international markets and unmatched levels of service through a comprehensive selection of products and services.
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Credit Trading Solutions for Your Business
DBS’ credit trading solutions successfully supply secondary market liquidity. Using Artificial Intelligence and robotics, they could accelerate and widen their coverage by focusing mainly on Asian credits. Here are some specialised credit offerings created to help your company succeed.
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Singapore Dollar-Denominated Bonds
The SGD bond market, which consists of Singapore Government Securities (SGS), structured securities, corporate bonds, and quasi-sovereign bonds, is one of the most developed markets in the Asian region. The need to invest in return-giving assets managed by a leading investment company or brokerage firm has increased demand for Singapore dollar bonds.
DBS, as a leading market maker, offers leading investment solutions helping you attain a diversified portfolio by investing in prime Singapore dollar-denominated bonds. Investors who want to increase their returns with regular income, but are risk-averse can choose SGD-denominated bonds.
Why should you choose DBS for SGD bond investment?
- You can have access to DBS Research’s in-depth research and insightful details.
- With the help of their thorough evaluation procedures, you can understand the investment risks.
- DBS is ranked among the top regional bond houses owing to their capabilities, knowledge and award-winning skills.
- The investment professionals at DBS will help determine the best investments for you.
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Indonesia, India, and Philippines Credits
By diversifying your portfolio and using DBS’ expertise as a top credit trading desk as guidance, you can increase your chances of investing in higher-yield securities. Further to their extensive selection of credit options, DBS can give your company a solid base thanks to their in-depth knowledge of Asian markets and our established relationships with the region’s major players.
DBS is one of the leading sell-side dealers for credit and national government bonds in Indonesia, India, and the Philippines. Its knowledgeable staff assists you in choosing from custom credit options that meet your needs across a range of tenors and currencies. They assist you in understanding your financial risks through rigorous evaluation methods.
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G3 Bonds
With DBS’ G3 bond products, you can diversify your portfolio and increase your returns. You can have access to various investment opportunities across the world by using DBS’ solid relationships with reputable bond issuers.
They help you invest in a variety of bonds from issuers in both primary and secondary markets across Asia, including Japan, and provide regular access to various private placement offerings.
DBS is a leading dealer in US dollar Singapore Corporate bonds with strong relationships with Singapore and Hong Kong-based issuers. Moreover, it also offers related knowledge and insights into the market, economy, and local conditions.
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Forex and Commodities
You can take advantage of online resources, competitive rates, and data analysis for access to trading in carbon, FX or forex and commodities markets. With reliable solutions, DBS helps you gain knowledge about the market and determine trends for better business opportunities.
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FX Derivatives
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Dual Currency Investment
Being a dual currency investment, a currency-linked investment helps the investor get back the capital with interest at maturity in the currency, depending on your choice of base or alternative currency. The interest you receive on the currency-linked investment includes a premium based on your currency choice. As a structured product, you will receive higher interest returns due to the increased interest you get by your currency choice and short tenors.
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FX Hedge Solutions
By taking a stand contrary to the one used in a related asset, investors can use hedging as a strategy for risk management to offset losses on their investments. Your assets can be shielded from possible market volatility, foreign currency fluctuations, and market views by:
- Asset Protection: DBS helps protect your assets’ worth from possible foreign exchange fluctuations while taking care of liabilities with a reliable asset protection solution.
- Risk Mitigation: Irrespective of whether you have FX payables or receivables, future-proof your cash flow against possible risks of exchange rate fluctuations.
- Hybrid Solutions: Take advantage of hybrid solutions for fluctuations in currency and interest rates.
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Commodities Derivatives
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Commodities Liquidity Swaps
You can lower the financing requirements for the initial and fluctuation margins necessary to maintain a futures position with exchanges by using Exchange for Swaps (EFS).
With EFS, you can safeguard your company from increased market volatility, as well as take steps to protect your cash reserves from significant variation margin calls.
The “Exchange for Swap” is a secretly negotiated transaction in which a futures position is traded for an equivalent over-the-counter swap. Exchanging one thing for another is referred to as an exchange for a swap, which is generally used for cash flows or financial instruments.
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Commodities floor cap technique
The commodities floor cap method will assist you in safeguarding your company against price changes. You can hedge your lower and higher price range while maintaining market risk within a predetermined range. This solution’s range and tenor can be completely adjusted to meet your requirements. It keeps some degree of market participation while incurring significantly lower hedging costs.
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Fixed Income
When it comes to Asian bonds in the bond markets, DBS’ Fixed Income category is the leading underwriter and book-runner. They have a team of professionals providing effective, solid, and cutting-edge solutions in creation, structuring, ESG advisory, ratings, credit research, trading, and sales to investors located across the globe.
DBS helps use their financing skills in the fixed income category through products like FIX Marketplace, ESG Advisory, Structured Debt Solutions, and Private Debt solutions.
The regional scope of DBS Treasury & Markets has expanded in Asia. Starting with Singapore and Hong Kong markets in 2000, it has expanded to countries such as Taiwan, China, India, South Korea, and Indonesia.