Credit Lyonnais has hired Adam Durran, head of credit derivatives trading at Barclays Capital Japan, to start actively trading credit derivatives in Japan. The bank has executed a handful of trades since it started looking at the product in the last couple of months, but market officials predicted this hire will kick start the firm's effort.
"We're up and running and looking to increase our efforts," said Edward Willems, head of distribution and now-regional head of credit derivatives in Tokyo. He noted that the bank is currently looking to build up its credit derivatives desk but declined further comment. Durran is on gardening leave and could not be reached for comment.
"Everybody and their dog is setting up a credit desk," quipped one credit head in Japan, noting that the growing number of players is a positive sign of the market's development. "There's a lot of business--there's still room for a lot of players," said another credit head in Tokyo, adding that the credit derivatives market in Japan is heading for another record year in terms of volume as more domestic end-users pile in.
"Adam's a smart bloke," noted a credit derivatives trader, adding that Durran had been a solid trader at Barclays and should make a success of the business at the French bank.
At Barclays, Durran reported to Vincent Balducci, managing director of risk finance in New York. Jonathan Williams, spokesman at Barclays in Japan, declined comment.
Credit Lyonnais set up a credit derivatives operation in Hong Kong last year to cover the non-Japan Asian market which was said to be part of a effort led by Omar Abukhadra, global head of credit derivatives in London (DW, 7/22). Lyonnais has subsequently made a number of hires for the desk in recent months including Eric Lam from ING Financial Markets (DW, 5/5). Abukhadra did not respond to messages.
