J.P. Morgan Chase is looking to expand into credit derivatives in the Korean market to meet demand from corporates and local banks looking to cover problematic loans. The bank is in the initial planning stage and probably will roll out products by year-end, according to a trader in Seoul. Officials at the bank could not be reached for comment.
The move follows the decision by Kookmin Bank to muscle into the local credit derivatives market (DW, 2/26). Nick O'Kane, business head of derivatives and structured products, said the bank's clients are looking to purchase credit derivatives to enhance yield, as well as hedge credit risk. Kookmin plans to bring on board an additional structured finance professional and one or two traders, all on loan from Australia's Macquarie Bank, with which it has a partnership.
