Our Fixed Income business offers a full range of products and services, from primary issuance, secondary bond market making, structured credit/rates/FX solutions, to acquisition/mezzanine financing for global investors and issuers. Leveraging CITIC Securities’ dominant position in mainland China’s fixed income market and CLSA’s global network, plus the strong capital base and affiliation with CITIC Group, CITIC CLSA has fast become a leading underwriter and market maker for Chinese dollar bonds and CNH bonds issued by global companies, and a leading structured solution provider across Asia.
Credit Market Making
With a strong dedicated balance sheet and a team of experienced traders and research analysts, the Credit Market Making desk has quickly established itself as a leading franchise for Asian bond trading amongst investors, providing liquidity to CITIC CLSA’s clients . With desks in Hong Kong, Singapore, London and soon New York the platform focuses on making markets on Asian bonds for our clients around the world. The range of bonds quoted include all CNH denominated bonds, all Asian (ex Japan and Australia) USD denominated HY and IG bonds, all Asian USD denominated sovereign and quasi sovereign bonds and European USD denominated AT1 bonds. We have an extensive sales team across all regions globally covering all clients and products. Our clients include hedge funds, banks, asset managers, Funds, Family Office, Private Banking, etc.
Fixed Income Syndicate
CITIC CLSA is a major underwriter of CNH and USD bonds, bringing together global issuers that have interest in raising capital in the CNH/USD markets and global investors as a whole. Issuers come from Europe, North America, South America, Asia and Oceania. We are also playing an increasing role in foreign currency-denominated bond new issues by Chinese and China-Concept companies; and also European issuers interested in issuing in Asia in local currency or G7 currency. Our strongest issuance space is of course from Chinese issuers in both investment-grade and high-yield. We have over 700 bankers in China alone and are continuously expanding to areas where we see growth and opportunity.
FX & Rates
Our FX and rates business tailor make vanilla and structured products to suit clients’ views or hedging requirements in the FX and/or interest rate space. These can be done as outright derivatives or incorporated into notes to take advantage of our funding spread. We cover all the main currencies and with our access to onshore liquidity, we are especially strong in RMB swaps.
Structured Products are designed to facilitate highly customized risk-return objectives. At CITIC CLSA, we tailor-made bespoke solutions to investors and issuers based on their financing needs and investment objectives. Our structured solutions business encompasses all asset classes of credit, rates and FX, with the capability to deploy a range of financial instruments, including but not limited to CITIC’s global structured securities issuance program, Cayman Island based global repackaging program, and ISDA OTC swaps, to help clients achieve various transaction objectives, such as risk tranching, embedded FX/rates hedging, asset leveraging, balance sheet optimization, and access to assets etc.
Partnering with our IBD team, CITIC CLSA’s Structured Finance business endeavors to provide short term bridge financing to clients in supporting their strategic moves, including but not limited to acquisition of companies/assets, pre-IPO restructuring/anti-dilution and/or general working capital loans. Working closely with Structured Solution team, we could also embed rates/FX hedging into the financing structure. We are flexible and risk driven, and by investing the firm’s own capital we align our interest with other co-investors in syndicated transactions.