What the HSBC/Bermuda deal means

Last week's announcement that HSBC would acquire the Bank of Bermuda for $1.3 billion will create a behemoth in the Asian funds administration world that is going to have consequences for the entire industry. A series of interviews with market participants as well as deal insiders indicates that, although the merged entity will have price-setting power, the vacuum will provide room for other players that have long sought entry to Asian funds administration but would have found little room with two major players involved.