ADVERTISEMENT

HSBC’s Top Bond Analyst Moves to Hong Kong From London to Boost Asia Business

HSBC’s Top Bond Analyst Moves to Hong Kong From London to Boost Asia Business

Steven Major, HSBC Holdings Plc’s global head of fixed-income research, has relocated to Hong Kong from London to boost the firm’s Asia business.

Major will serve stakeholders and clients globally from Hong Kong, and help in strengthening the region’s client franchise, according to a memo seen by Bloomberg. An HSBC spokeswoman confirmed the contents of the memo.

The move follows HSBC’s appointment of Hong Kong-based Paul Mackel as its top foreign-exchange strategist in November. The high profile moves are a testimony to the growing significance of Asia in the trading business as London loses some of its shine amid Brexit negotiations.

Major’s team is calling for a continued rally in Treasuries for 2021 in their recently released report, forecasting that yields on the 10-year benchmark should remain in the 0.75% range for the next two years as the Federal Reserve maintains its new average-inflation-targeting framework.

In the past, he made calls that has made him an outlier on Treasuries. In April, his forecast that yields would drop to end the year at 0.5% was the lowest among analysts surveyed by Bloomberg. He stuck to a forecast for 2.1% in the middle of last year when others had slashed theirs to below 1%. He stood out in 2014 for correctly predicting that yields would drop to about 2.1%, while the median forecast was 3.4%.

“After 20 years at HSBC, and 35 years in the business, Asia is where I can add more value,” Major said in an emailed statement.

Read More: HSBC’s Top Asia Dealmaker Enns Is Leaving Lender Next Year

Major remains mildly bullish on China’s government bonds in 2021. Implied policy tightening in the bond curve appears excessive given deflation pressure, uncertainty over the global pandemic, and the yuan’s strength, according to his recent note. Among corporates he favors China property high yield bonds.

HSBC has seen a slew of departures at its global banking and markets unit this year, including former global head of equities Hossein Zaimi. The division is being reshaped as part of a broader restructuring, which includes the lender cutting as many as 35,000 jobs. Key to its strategy is a sharper pivot to Asia, and in particular China and Hong Kong, where it’s had to navigate rising geopolitical tensions.

©2020 Bloomberg L.P.