Álvaro Vaqueiro: "Our leadership is not a matter of luck" October 9, 2013
Álvaro Vaqueiro: "Our leadership is not a matter of luck"
Álvaro Vaqueiro, Head of Global Markets in BBVA Bancomer's Corporate & Investment Banking division, analyzes the Mexican market and shares some insight into BBVA's Global Markets business in Mexico.
Q: BBVA Bancomer has an absolute leadership in the Mexican market retail market and Corporate & Investment Banking. How do you plan to maintain it in Global Markets?
At BBVA Bancomer Global Markets, we defined a sound growth strategy for 2013 in our products and client segments, not only deepening and strengthening the relationship with our existing clients, but also to expand our client base in new segments, such us international investors and frequent issuers in capital markets. We have been focusing on increasing the trading and distribution of each of our products in the global markets, taking advantage of the growth of the primary market. We are also focused on developing structured products and solutions, positioning ourselves in non-standard products and enhancing our FX platforms to reach a wider set of clients. Particularly, we have established focused strategies for our core products: Rates, Equity, Credit and FX.
Q: If we dive deeper into your product offering in Mexico, what is happening in the equity business?
BBVA Bancomer, as leading issuer in Mexico, is involved in all major deals. Dealogic ranks Casa de Bolsa BBVA Bancomer, a leader in equity capital market deals in Mexico. Furthermore, BBVA Bancomer has the capacity to provide attractive investment opportunities and excellent execution to institutional and retail clients.
In this respect, BBVA Bancomer has arranged more Fibras -Fideicomiso de Infraestructura y Bienes Raíces (real estate investment trusts) issuances than anyone else in Mexico, for instance: Fibra Uno, Fibra Macquarie and Fibra Hotel. This product offers our clients a secure way to access new opportunities while providing financing to a key economic sector with huge growth potential. At the same time, BBVA Bancomer has launched 6 proprietary ETFs that play on both industry and geographic exposure, giving investors more options for diversifying their portfolios.
Moreover, BBVA Bancomer is able to innovate products and solutions for investors in diverse and flexible markets such as: real time market, Vanilla and Exotic Structures without FX Risk. Additionally, its access to international indexes, ETFs and stocks are features highly valued by investors.
Q: Fixed Income products are a key part of your product offering. How well positioned is BBVA Corporate & Investment Banking to face the opportunities in the market?
Thanks to our deep understanding and analysis of flows at global and regional levels, BBVA is a leader in all aspects of the Debt Capital Markets, Interest-Rate and FX markets. It offers full capacity in all major currencies, for both cash and derivatives, including emerging markets, the Americas, Europe and Asia. Numerous international awards prove its recognition, year in and year out.
BBVA Bancomer's proven capabilities and extensive track record in capital markets, have positioned BBVA Bancomer as market leader in Debt Capital Markets in, in both Mexican Pesos and foreign currencies. That is why corporate clients such as América Móvil, Pemex, Red de Carreteras de Occidente or FOVISSSTE have trusted BBVA Bancomer to lead their bond issues.
BBVA Bancomer is the leading Federal Government bonds market maker, according to Banxico (Mexico's Central Bank) and SHCP publications; a distinction that makes us the most influential bank in local bonds transactions in México, as well as in the interest rate derivatives traded in the derivatives exchange (Mexder).
On the FX side, the bank ranks among the Top 3 in trading volume according to Banxico, and leads the Mexican derivatives market in USD futures volume. A year ago, BBVA Bancomer started offering an e-commerce platform for FX transactions called "BBVA eMarkets" which allows our corporate and institutional client base to execute their FX transactions online in real time, benefitting from a transparent and competitive pricing and the ability to make multiple related payments.
Q: It seems like the Structured Products business in Mexico is taking off. Is that also relevant for you?
BBVA Bancomer has managed to stay ahead of the competition thanks to its market know-how and technical services offering. It has been the leading issuer of Structured Notes since 2008 and currently we have a 37% market share and a 53% in the Structured Equity market.
In 2013, BBVA Bancomer expanded its long-term notes programme to include mortgage-backed bonds denominated in UDIs swapped into Mexican pesos, with note yields linked to a leveraged TIIE.
BBVA Bancomer also provides ad-hoc structured products that fit the profile of all clients, either to satisfy their recurrent investment needs or to take advantage of anticipated market moves with strategic solutions.
Q: How about the future? Are there any foreseen challenges for your Global Markets business?
The current industry climate poses daunting challenges, mainly in aspects such as regulation, market fragmentation and increased capital consumption. The bank has responded by increasing the capacity of local products worldwide, thus increasing its cross-border capabilities. This is supported by a state-of-the-art global platform and an integrated structure in the BBVA Group in Europe, USA, Mexico, South America and Asia. All this enables us to generate and distribute global products to local clients and vice versa and offer a wide range of high value-added solutions.