Moody's Investors Service is in talks with U.S.-based derivatives-savvy professionals, aiming to appoint the first person to its newly conceived derivatives team by year end. David Fanger, senior v.p. in New York, explained the hire is being made as part of a recent decision by the rating agency to create specialist accounting, derivatives and corporate governance teams. The specialist teams will serve as a resource for Moody's analysts, who are responsible for tracking a portfolio of firms. While Moody's analysts are already knowledgeable about derivatives, the fact they follow a group of companies full time gives them little time to focus on derivatives, thus the attention of the specialists will aid in making the information more robust, he added. The new hire will report to Christopher Mahoney, senior managing director.
The derivatives appointment will accompany Moody's analysts to meetings with corporations that have active derivatives businesses to aid in evaluating how risky a firm's derivatives activities are, including its impact on bond holders, said Fanger. The new hire will likely be someone who has worked for a firm in a risk management function, or may have a quantitative background, having traded derivatives in the past. Further appointments may be made, depending on the demand for the expertise.
