Wachovia Securities plans to make its first foray into the structured equity derivatives market. The firm has hired Steve Young, an equity derivatives structurer and quantitative researcher at Merrill Lynch in New York, to lead the effort. The firm plans to market the new products, which will include reverse convertibles and possibly equity-linked notes, to retail and high-net-worth customers in the next two months.
The firm decided to enter the market now because its customer base has been demanding it provide a way to invest in new equity structures focused on the retail sector and wealth investors.
Young has joined as the head of the structured product group in Charlotte, N.C. and reports to Todd Wickwire, director of institutional research, according to a firm official. Young declined comment and Wickwire did not return calls. At Merrill Young reported to Mike Perry, head of the equity derivatives private client group in New York. Perry declined comment.