A growing number of synthetic credit investors in the Middle East are launching credit trading units. Marketers into the region say banks and money managers are bringing in expertise from European firms to set-up the desks, with one salesman noting at least four new start-ups this year. He declined to name the companies, but said Dubai, Abu Dhabi and Lebanon are hot spots for further growth.
"Investors who are sophisticated and have developed views want to set their own benchmarks to trade against," said another marketing official. Popular investments include collateralized debt obligations, asset-backed securities and CDO squareds, he added. City recruiters have also noted a pick-up in mandates in the region. "It's hot," said one City headhunter.
