ABN AMRO will launch a range of hybrid products this month linked to rates, foreign exchange, credit, commodities and inflation. James McNabb, head of the hybrids trading group in London, who started working on the new business in March (DW, 3/21), said it is now ready to issue products on a large scale. Several other houses, including BNP Paribas (DW, 1/17), have set up hybrid trading books in recent months.
"This is a brand new business for us," said McNabb, adding, "I think there are a lot of very interesting opportunities here." The Dutch house has sold hybrid structures in the past, but the separate asset classes of the product have been traded from different desks. ABN structurers are planning to offer a range of best-of basket products and will also look at structures with periodic payments linked to different asset classes, according to an official at the firm.
McNabb works in the interest rates group and reports to Jasper Van Wel, global head of structured products trading in Amsterdam. McNabb said the group has hired internally, but may look to add traders during the year.
