Supreme Solutions in a Low-Yield World

“在20世纪90年代，银行业的重点是全球化，”摩蒂·俊格，副主席，货币和金属负责人，在TD证券。“由于危机以来，不断增长的监管压力和资本需求上升已经将重点转向区域化。随着美国和欧洲的许多银行无法产生足够的股权回报，以向股东提供增长，从无利可图的企业和重新剖足的国内行动中有一个裁剪。“

A Bigger Footprint in the US Capital Market

This has unlocked a wealth of new opportunities for TD Securities, the broker-dealer unit of Canada’s Toronto-Dominion Bank (TD Bank), which over the last decade has been expanding rapidly in the US. “We used to think we had 30 or 40 competitors in the US,” says Jungreis. “Today, we believe we have no more than 10. You could almost argue that in 5 to 10 years there may not be enough banks in the US to sustain the growth of the capital market either from the perspective of issuers or the buy-side.”

美国商业和零售银行市场的TD银行的涡轮增长在整齐地随着TD证券投资银行业务特许经营而整齐地携带，现在，该专家的扩大，该专利现已成为支持投资者在狩猎中获得收益率。这是一个特许经营权，在过去二十年中，在非核心美元的成功上得到了认可的特许经营，但在美元市场中的固定收入业务的推出是完全定时的。“这台平台的扩张是在纽约议员中成为G7中最高收益货币的推广，这鼓励来自欧洲和日本的投资者增加他们的美元持股，”Jungreis说。

For TD Securities, which had already developed strong relationships with the world’s most prestigious borrowers through its leadership in currencies such as Canadian and Australian dollars, this made origination and distribution of US dollar-denominated sovereign, supranational and agency (SSA) bonds a natural fit. John Moore, Head of U.S. & International Fixed Income, says that TD Securities’ commitment to its US dollar fixed income franchise was easy enough to demonstrate to issuers and investors alike, given the size and visibility of its US presence. “We now have more branches in the US than we do in Canada,” he says. “So whenever we’re asked about our commitment to the US market, we tell issuers and investors to see how many TD branches they can spot next time they’re in New York.”

An Investor-Driven Franchise in Metals and Currencies

It is not just the TD Securities dollar fixed income business that has thrived in recent years. The metals business it launched in mid-2009 has also derived extensive synergies from the depth of TD Securities’ corporate relationships and hedging capabilities. More recently, it has also started to support the hunt for yield across the global investment community. Michael Twaits, Global Head of Foreign Exchange and Metals, explains that TD Securities has recently recruited a number of people in New York and London to support a new institutional distribution initiative in the metals market. “Given the strength of our relationships with investors across so many asset classes, adding metals was a natural extension of our distribution model,” says Twaits. “There is a perception among investors that we may be nearing the bottom of the commodities cycle.”

Currencies are another asset class that institutional investors are increasingly exploring as an alternative way of generating uncorrelated returns in today’s ultra-low yield environment. As it has done in the fixed income and metals markets, TD Securities has refined its model in the FX market proactively to cater to the shifting requirements of investors. “Up until two years ago, our currency business was largely North American-centric,” says Twaits. “Since then, we have invested significantly in customized FX execution and overlay services to support institutional investors’ search for alpha.”

With subdued growth and low returns likely to persist over the next few years, TD Securities is committed to partnering its institutional investor clients in their continued quest for alpha. “Increasingly, the global investor base will need to look beyond credit and duration as a means of adding value,” says Moore. “We believe our value proposition across a growing range of asset classes will support institutions in this environment.”

Jungreis agrees, adding a note of cautious optimism for the economic outlook. “We need to watch developments in China and in global commodities prices,” he says. “I see oil prices staying in the $40 to $50 range, which will be supportive for economic growth and capital market flows. Against that backdrop, we are confident that we can continue to grow without compromising on our culture or taking excessive risks.”