Crédit Agricole Indosuez plans to start stripping convertible bonds and hire credit derivatives professionals as part of its effort to boost its Japanese desk. The firm is looking to hire a senior trader and a marketer in the coming weeks, according to Loïc Fery, global head of credit derivatives and structures in London. The move follows an increase in exotic trades, such as CDOs and baskets, which means the trading book needs to be more actively managed. The firm is already one of the largest convertible bond strippers in London and recently started structuring the first synthetic collateralized debt obligation referenced to convertibles to lay off some of the risk (DW, 3/30).
The Japanese credit derivatives operation currently consists of a senior and a junior structurer, who report to regional heads in Hong Kong. But the reporting lines are being shifted so that the staffers report directly to Fery. This shows the increasing importance of the business, according to Fery, who added, "We want this business to be visible to head office."
