Seoul-based Korea Exchange Bank plans to set up a credit derivatives operation next year to take advantage of the growing interest in the instruments. Dennis Chae, an official in the financial engineering department, said the bank plans to structure and invest in products, such as synthetic collateralized debt obligations and credit-linked notes. The move follows the bank's foray into equity derivatives in the spring (DW, 3/10).
Chae said the desk will likely be up and running in the first half of next year. "The plan isn't fully consolidated--it will take a few months to sort out," he added. KEB will likely need to hire additional staff, said Chae, declining to elaborate.
