As liquidity becomes more of an issue in Asia’s G3 cash bond market, it is spurring activity in credit default swaps (CDS) with the addition of new participants. The recent announcement in China to allow CDS trading provides yet another fillip that augurs well for increased activity in the future.

The Asian CDS space has traditionally been dominated by banks’ CVA (counterparty valuation adjustment) and structured credit desks. In the past couple of years, however, new entrants including real money asset managers and hedge funds have become active boosting overall turnover. According to one salesperson, these players use CDS: “not only as a hedging tool, but actually as a way to add risk in their book, i.e. selling protection.”

The stepped up activity in the Asian CDS space interestingly coincides with China’s efforts to deepen its capital markets. In late September, China’s National Association of Financial Market Institutional Investors (NAFMII) announced they would allow the trading of CDS in the country’s interbank bond market.

Given the government is withdrawing as a guarantor and allowing defaults in the onshore corporate bond market, this move comes as a relief for the financial community. These credit derivatives are seen as a necessary and important hedging tool to promote effective risk management among investors in the event of defaults. The impact of this move is paramount, according to a CDS sell-side: “…it will be massively positive for the CDS product in terms of visibility and credibility.”

Against this backdrop, Asset Benchmark Research releases its inaugural ranking for the Asian CDS space this year and has singled out six individuals that stood out. Topping the list of salespeople is Gregory Camous at BNP Paribas. One structured credit trader explains how Camous understands the clients’ requirements: “Every account is different and every requirement is different, he understands what we need and comes out with the right kind of axes.”

In second place is Neel Dave at Goldman Sachs. A head of structured credit notes: “He keeps good track of what went down in the past and where the interest was and whenever that might cross he would just flag it out to me on chat or on a call.” Edouard Bergis at J.P. Morgan is ranked third. “He is reliable and has a very good memory on what trades we are looking for,” says one CVA trader.

In trading, Terry Koh at Barclays takes first place. One portfolio manager describes him as “quite good in providing colour and just sending updates and things like that. I’d probably consider him to be one of the more active or more involved traders in that market.”

Taking second spot is Prashant Pandey also at BNP Paribas. A fund manager applauds his pricing as “very good across the curve and generally his risk appetite is good.” While Duncan Robinson at Deutsche Bank is third in the ranking. “He has a view and he trades accordingly,” says one chief investment officer.

Asset Benchmark Research surveys over 300 institutional investors, including international and Asian-based asset managers, banks, private banks, insurance companies and hedge funds active in the Asian G3 bond market and Asian CDS space, in its annual Asian G3 Bond Benchmark Review. Subscribers are given exclusive insights into their views, buying behaviour and user profiles. For further queries, please contact [email protected].

The Asian CDS data set covers trading behaviour, top counterparties and best individuals in the space. Qualitative data is also presented. The review is conducted during the second half of the year.

For the inaugural ranking of the best individuals in Asian CDS for 2016, please click here.