Coming into Force of Financial Institution Obligations – TD Securities

TD Securities has long had a respected company in SSA, but when Edward Arden, global head of financial institutions, joined the company in 2016 to build a global FIG business, it was almost a blank slate.

“We knew we had to try to think a little smarter and try to work a little harder,” he says. In practice, this meant engaging with customers on their terms and focusing on changing perceptions of TD rather than promoting a mandate at the expense of a broader discussion.

“The way we talk about it as a team is to imagine that we are seated on the client side of the table, so we don’t pitch but we think as an emitter and what would be our constraints and objectives”, a- he declared. said. “We always want the client to feel like they walked out of a conversation, meeting, pitch or strategy session smarter and more informed than when we walked in.

Starting with focusing on US dollar covered bonds and then senior debt, the FIG franchise grew, using Arden’s baseball metaphor, hitting singles. From his first role as an associate bookrunner in 2015 on a Lloyds Bank senior dollar FRN to the opening of the pound sterling market with a Wells Fargo senior deal in 2019 and his first additional Level 1 dollar tenure for ING Groep in 2020, it has progressed step by step.

This is done by avoiding the traditional mistakes made by investment banks as they expand into new markets – either by trying to quickly offer a full range of products that dilutes efficiency, or by sticking to an offering. very close which quickly transforms the dialogue with issuers into a monologue on a single product or a single currency.

“The critical turning point for us was being aggressive on capital early on, which raised the perception of TD. When trying to create value-added mind sharing, the opportunities in cutlery and seniors are much more limited than in capital.

This move has paid off over the past year as central banks opened the liquidity taps in response to the Covid-19 crisis, leaving banks with less market funding to do and more balance sheet optimization. .

Nowhere has TD’s value-added ethic been clearer than in its approach to the Libor transition, which it recognized early on would become a huge challenge for the market. His work on the New York Federal Reserve’s Alternative Reference Rates Committee (ARRC) put him in the box to start Sofr and Sonia’s business, but it’s the extra-mile ethics that has really established TD in the market.

“Most issuers will go for the consensus solution, but the real impact of the Libor transition for any bank will be how it faces its own customers and manages its own affairs. We went out and connected senior operations executives at TD Bank to show how we are dealing with these transition issues on our own.

Likewise, his approach to the wave of ESG trading that has swept the market is based on engaging with clients, not just presenting another standard green bond framework.

“The real impact you can have with a client on ESG isn’t just about aligning a framework with requirements. These are table stakes, ”he said. “What really benefits clients is a broader discussion of how they can manage the green transition – and as a bank emerging from a resource-based economy, we have a lot to share on what we have learned that can be of use to other financial institutions around the world. .

“We know that if we help our clients do their jobs better, the right decisions will be made at the right time. “

Issuers also liked what Arden calls TD Customer Service. “A lot of people forget that for an issuer, a transaction is not completed once its price is fixed,” he says. “This means being vigilant in providing secondary liquidity, it means following the discussions on investor engagement and making sure the next deal is a success.”

Now that this change of mind has been made, where next for the band?

“We are proud of our efforts and proud that they have been recognized by our customers with this award,” says Arden. “As reasonable opportunities arise in European markets, we will be resourcing them effectively to ensure we can continue to create great customer experiences. “

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