Nikko Salomon Smith Barney is planning to double its credit derivatives desk in Tokyo within the next six months amid growing client interest, in part driven by the weakening credit environment. The firm plans to hire two or three traders and the same number of structurers, according to an official in Tokyo. "It's in the game plan," he quipped.
The current four-member credit derivatives team handles credit-default swap trading as well as credit structuring. The team reports to Yoshito Matsuura, head of credit derivatives in Tokyo. Matsuura declined comment.
"More clients are becoming comfortable with credit risk and existing customers are looking to expand their lines," said the official, adding that a driving force for credit derivatives products is the weakening credit environment in Japan.
