Credit Suisse First Boston has created a global structuring group that amalgamates the firm's emerging markets, insurance and tax structuring units. Jeremy Bennett, head of emerging market credit structuring, will head the new group, dubbed Credit and Insurance Structuring (CIS). Beyond offering collateralized debt obligations, the firm has not yet fully developed its credit derivatives structuring abilities for the group of 20 most developed countries, according to Bennett. The reorganization will allow CSFB to expand its structuring presence in these countries as well as continue to grow its structured business in emerging markets. Structures developed by CIS will address risk management and capital raising issues for clients, he noted.
In addition to existing staffers from the merged units, CSFB has also transferred several senior staffers to CIS, which has a head count of around 45. Further transfers and new hires are planned, according to Bennett. Carl Bautista, head of structuring for non-Japan Asia in Hong Kong, will move to New York to head up North American structuring within the group, said Bennett, adding that his replacement in Asia has not yet been finalized. Steve Chapin and David Moffitt, both directors in credit derivatives sales in New York, will also transfer into the group in the coming weeks. A further five to 10 external hires will also be made in New York and London with CSFB expecting to make a more substantial number of hires in the longer term, he added. The firm has not yet decided who will head up credit structuring in Europe, he added.
While CSFB's emerging markets group had originally focused on the provision of political risk insurance through its captive insurance subsidiary Boston Re, the group has evolved to include project finance and commodities risk management, Bennett explained. The success of this operation has encouraged the firm to expand this desk across larger economies, particularly North America and Europe, he said. CIS will also become the focal point for the firm's dealings with insurers and reinsurers in developing new forms of structured products for CSFB's lending products, securities and credit derivatives risk books, said Jerry Wood and Jim Healy, global co-heads of fixed income in an internal memo.