Equalt, the alternative asset management arm of Crédit Agricole Indosuez with EUR650 million (USD695 million) of assets under management, plans to launch a capital structure arbitrage hedge fund. The fund will use over-the-counter derivatives, including credit-default swaps, according to Pierre Valentine, cio for all of the firm's quantitative strategies in Paris. The asset manager's plans for the capital structure fund are still in the early stages, but he said it is likely to launched by year-end.
The hedge fund manager already uses OTC derivatives for another one of its funds, a fixed-income arbitrage fund. Chistophe Turpault, co-manager of the fund in Paris, said the fund uses vanilla interest rate derivatives, including swaps and swaptions.
