Tokyo-based derivatives boutique First Chicago Tokio Marine Financial Products plans to set up a credit derivatives desk and eventually intends to become a market maker. Kiyo Miya, head of marketing, said the firm recently started structuring credit-linked notes in Japan and sees the move to create a trading desk as a natural expansion of its business. Takeshi Yoshikawa, ceo, added that as a joint venture between a Japanese insurance company and U.S. bank is in a strong position to bridge the credit derivative markets in both countries.
The firm will hire for the desk, Miya noted, declining to give details on this point. "We'll start small and grow big," Yoshikawa added, noting that the operation should be up and running before year-end. Yoshikawa was recently named as ceo after Jeffrey Robbins quit to join AIG Financial Products (DW, 7/2).
An official at a U.S. house in Tokyo said that if First Chicago can recruit the necessary talent and is committed to the product, than it could arguably have a better shot at becoming a market maker than many of the local Japanese banks. Most local banks are primarily involved in executing customer business, he said. First Chicago Tokio Marine's AAA rating likely will help the effort, he added.
