Hartford Investment Management, a money manager with USD171 billion in assets, is working with Morgan Stanley as its exclusive counterparty as it prepares to pull the trigger on its first credit derivative. An official at the money manager in Hartford, Conn., said it chose Morgan Stanley because it had offered the best advise throughout the process. The money manager spoke to all the major players, including Lehman Brothers, Merrill Lynch, Deutsche Bank and Goldman Sachs, the official added.
The firm plans to both buy and sell protection on single-name investment-grade credits and will pull the trigger on its first transaction in the second quarter, according to Bill Meaney, portfolio manager (DW, 11/26). Meaney declined comment about counterparties. The manager is working on the legal and system technicalities to trade credit derivatives. Jim Vore, v.p. and product manager for credit derivatives sales at Morgan Stanley in New York, declined comment. Spokesmen at Lehman, Merrill, Deutsche Bank and Goldman did not return calls.
