ABN AMRO has set up a joint venture for instruments that span the interest rate and credit markets. James McNabb, global head of credit derivatives trading in London, has been promoted to global head of cross-markets to spearhead the effort. McNabb said the 20-strong group would offer a wide variety of instruments, including interest rate swaps that knock out if there is a credit event and also options on bonds.
The move is part of a growing trend by derivatives houses to beef up their hybrid derivatives capabilities. For example, Merrill Lynch merged its debt and equity structured marketing teams in London last month (DW, 2/22) and JPMorgan set up a credit and equity joint venture in Tokyo late last year (DW, 11/17).
The firm recently hired Alberto Thomas, a senior structurer at UBS, for a similar role in the group. Thomas reports to McNabb, who said he would look to selectively hire as the group grows. McNabb reports to Jasper van Wel, global head of structured products trading in Amsterdam, and Arne Groes, head of credit trading in London.