Shinsei Bank is setting up an internal unit to rebalance its credit risk and has hired Nick James, deputy general manager of structured credit in the bond division at Daiwa Securities SMBC in Tokyo, to spearhead the effort. James said the unit, called the active credit portfolio management group, will look to rebalance credit and concentration risk and will actively employ credit derivatives as well as securitization tools.
"We're in the process of setting up systems and should be trading by June," said James. The group will be able to trade credit-default swaps, invest in CDOs and securitize in-house assets for CDO transactions. The move follows in the steps of global rivals that have set up similar operations in recent years to over see credit risk, he added. The current team of five is planning to hire two additional staff in the next few months.
Officials in the bond division at Daiwa declined to comment.
