Deutsche Securities launches first real time, executable pricing of US Mortgage TBAs for Japanese, Asian Investors
Deutsche Securities Inc. (DSI) today announced that it has launched the first live electronic pricing for US mortgage TBA (US: To Be Assigned / Japan: To Be Announced) securities in the Japan & Asia time zones. Deutsche Bank Group is committed to enhancing both the transparency and liquidity of this market through this first of its kind real-time pricing and execution capability in Japan.
Deutsche Bank Group is a top three provider of liquidity in the US mortgage TBA securities market. Utilising this superior access to pricing information, the DTBA service (Deutsche: US mortgage To Be Assigned) employs a proprietary pricing engine developed in Tokyo to offer prices to investors via the Bloomberg network (DTBA <GO>). Investors are able to trade by simply clicking on the prices on their screen. Orders are then sent to and executed by either the New York or Tokyo trading desk, according to market hours at the time the order is placed. Additionally, investors can track and analyse mortgage valuations using relative value tools provided alongside the executable pricing information.
Mortgage-related securities are now the largest fixed-income asset category in the United States and demand for them, particularly for mortgage TBAs, has been growing among investors in Japan and Asia because of the premium they offer over US Treasury bonds. US mortgages represent a pool of residential loans securitised to AAA credit quality and guaranteed by US government agencies, such as Ginnie Mae. The mortgage premium stems from the optionality the US homeowner holds to refinance their mortgage at some point in the future.
Matthew Hodgson, Managing Director and Head of Non-Yen Rates Trading at DSI, commented,
“Providing our clients in Japan and Asia with on-line trading capability anticipates the next logical step in the market’s evolution from current voice-based trading. Fulfilling our commitment to our clients, we have therefore made significant investments in both establishing Tokyo trading capabilities and the electronic infrastructure to empower clients and give them all the benefits that straight through processing provides.”
Henry Ritchotte, Managing Director and Head of Global Markets at DSI, said, “The considerable intellectual capital and market positions we have established in the US mortgage securities market and in electronic trading systems globally for a broad range of asset classes, gives us strong insight. Levering these strengths of Deutsche Bank Group’s global platform, including its research, structuring and execution apabilities, DSI is focused on offering solutions that continue to meet the diverse and complex needs of our Japanese clients.”
For further information, please call:
Deutsche Securities Inc.
Aston Bridgman (81 3) 5156 7709
About Deutsche Bank Group
Deutsche Bank is a leading global investment bank with a strong and profitable private clients franchise. A leader in Germany and Europe, the bank is continuously growing in North America, Asia and key emerging markets. With 73,114 employees in 73 countries, Deutsche Bank offers unparalleled financial services throughout the world. The bank competes to be the leading global provider of financial solutions for demanding clients creating exceptional value for its shareholders and people.
In Japan, Deutsche Bank Group is engaged primarily in investment banking for corporate and institutional clients, corporate banking and asset management. The Group employs about 1,201 people.