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CS: Clients Like Fixed Income

Monday, October 04, 2010 - 04:58

As clients seek better and better yields, Credit Suisse Private Bank Americas CEO Anthony DeChellis says his firm is seeing higher investor interest in corporate credits and emerging market debt.

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These private BankAmerica CEO animated salas has been speaking at the writers global private banking summit he joins me now thanks for your time. Thanks for having me. Senior US businesses up sixteen to 20% year over year hospice translating -- sustain profit. The US businesses -- prices. Relatively new business in the grand scheme of Credit Suisse which is 154 your own private bank so. The business is becoming more -- more profitable each year so you start times is that -- 1620% year. -- That's a real issue gas at cern are up. Higher profitability is is -- certain irony is her. And that's and the case terrier thoughts prayers. And you've been hiring a lot of advisors -- plans to nearly double over the next five years howl that impact profitability. And will you maintain that projection even if the markets might turn again. That's it's a great question is obviously one you want sort of growth that has said he can sustain your profits. We don't. We have aggressive growth -- how many by industry standards do about 400 advisers in the US right now and so five years and looking at. All things go on the markets participate maybe 700. You advisers yes we're certainly able what our growth. To fund to self fund that investment and we should even growing toward that 700 number we should be able to. Continue to improve. Profitability resembling more with the private bank looks like globally. Of America -- there. Latin America as well -- profitability standpoint I was gonna wanna sort of best spots. For us and through both organic growth and acquisitions like hedging -- Continues to be one more profitable markets conference around the world and I think we are able will be able to grow there and to maintain. Now margins again very reasonable growth. Cash is king at the moment at least it. What are we gonna see a turnaround what will prompt some clients decides to lower their cash positions. I'd take a little bit more risk I think it's lesson last me. The credit crisis as it's more confidence crisis as I like to think about it so I think as investors start to see more clarity. What's gonna both from economic signs that things are getting better and also -- out of Washington house or what's in store for investors. From a policy standpoint. From a tax standpoint I think that's -- it will increase million people. More confident and investing. Investing more I think that's the biggest problem we have to solve right now. It continued on asset allocation you said Elizabeth and corporate credits -- long term. Asset allocation ladies think orgy C eventually clients going back to the more traditional . Equity heavy application. I think our our investors fixing them is always going to be part of of their portfolio. We have seen as it is higher interest and -- corporate credits . An increasingly more emerging market debt as well many people are searching for. Better and better yields. That is driving them not to look at corporate credits but also to look at emerging market that is an example. Prefer the large parent organization that can provide the private bank with things like technology. Investment management by the sweet spot where your close. But perhaps not too close to prepare for an. I think you know. Credit -- Has operations and fifty countries so I think. You have to adopt. The spirit of hiring the right people in the right markets and letting them do their jobs so I think you have all the resources. You available to you that a Credit Suisse. Can offer and certainly from an experience standpoint again 154 your old firm. I'm being able to draw on those resources so I think. That Christie's. Is very used to hiring the right people in the right markets helping define the strategy and then letting -- people around I think Brazil's is a good example of that where we went in and Ernie had a good presence there added an organization like as -- And have not hindered the growth of the organization anyway but actually put credits he's behind it make even bigger better and stronger so you -- is a dog abounds. Very quickly if there is one inefficiency in your chair Nassau next year what with that he. Inefficiency I would say we're really focused on -- from a technology standpoint allowing. Adding this is a challenge for the industry allowing -- our data to be accessed and now access but also manipulated. In a way that clients want to use that that that I think that's providing information as wanting to making it more manageable for clients making. The speed of access to that to that and I think that's one of these we want we want become much more efficient. To tell -- thanks so much thank you very. I'm Rhonda -- this is writers.

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CS: Clients Like Fixed Income

Monday, October 04, 2010 - 04:58