BNP Paribas has boosted its focus on credit-default swap trading for European emerging markets with the hire of its first full-time trader. The move comes on the back of increased investor demand to buy and sell protection on high-yield and investment-grade names in the region, said Antione Chausson, head of credit structuring in London. Edouard Hervey, who previously was an emerging markets trader for cash and derivatives, has been moved and is now a dedicated synthetic default swap trader in London. Hervey referred queries to Chausson.
"We've been present and active in the market for a while, but our traders were looking at different books and now we're putting an emphasis on this by having Edouard working on this full time," said Chausson, adding, "investors looking for yield can really pile into these countries." He said the bank plans to expand its activity in default swaps for sovereign and corporate credits in emerging Europe, Middle East and Africa though Hervey is the only planned dedicated trader for now. Hervey reports to Pierre Mathieu, head of flow trading for credit derivatives in London, who did not return calls.
