Dresdner Kleinwort Wasserstein has spun off a collateralized synthetic obligations group from its structured products group. This group will handle credit products structured using derivatives, such as synthetic collateralized debt obligations. The move is part of a restructuring of the global credit derivatives and structuring business under Matteo Mazzocchi, head of the group in London. Greg Lieb, who had previously been co-head of structuring with Forbes Elworthy in London, is heading up the unit, which was formed to meet increasing client-side demand for products such as synthetic CDOs.
"We had already been active in it, but this is more official focus and it's become big enough where we decided to break it up into a separate area," said Elworthy. Lieb has left for the holidays late last week and was unavailable for comment. Elworthy said he will now be co-head of structured products, except for structured synthetic products, with Stratis Hatzistefanis in London, who had been head of credit derivatives trading.
