HBOS, a U.K. mortgage and savings group, is expanding its equity structuring business with a new hire and a product launch. Steve Houghton, previously in equity derivatives marketing at IXIS Corporate & Investment Bank in London, joined HBOS Treasury Services in London last month as a marketer and advisor to HBOS subsidiaries. The group will launch its first structured product through Clerical Medical, an investment manager subsidiary, this week. The issue is a FTSE 100 growth product, which offers 100% capital protection plus 110% participation in the upside of the index until November 2010.
Houghton explained HBOS' treasury can hedge some products itself, but also works with investment banks in creating structures for the group's subsidiaries. Adding a sellside pro will help it get better value from the banks and will bring new ideas to subsidiaries. Houghton reports to Martin Owen, head of equity derivatives at HBOS, and Martin Cooper, head of structured products.
