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Goldman Sachs has set up a specialized structured credit trading desk in New York and has hired Will Roberts, former chief risk officer for equities at Credit Suisse First Boston, to head the initiative. Bruce Corwin, spokesman in New York, explained that the firm had previously organized its structured credit platform as part of its general credit derivatives business, but the business has grown to the point where increased specialization is required. Roberts did not return calls.

Last Updated on 7/11/03

Fortis Bank Hong Kong is considering establishing a credit derivatives desk in Hong Kong as part of its bulk up in fixed income. "We may start using this as a trading tool by the end of next year," said Philippe Dirckx, head of fixed income in Hong Kong.

Goldman Sachs plans to start offering equity derivatives on Chinese A shares after regulators gave it the green light to trade the underlying stocks last week. The renminbi-denominated A share market opened to qualified foreign investors last month, with Citigroup, Morgan Stanley, Nomura Securities and UBS receiving the first licenses (DW, 6/16). "It's an exciting first start, everyone knows this will be a huge business," said an official at Goldman. He added that while the firm was given permission to enter the market it is still discussing its initial investment quota with regulators, which may be up to USD300 million.

Xavier Mimaud, an index options trader at Goldman Sachs in New York who traded over-the-counter derivatives, has left the firm. It could not be determined whether Mimaud, who could not be reached, has joined a competitor. Ed Canaday, spokesman in New York, declined comment.

Crédit Agricole Indosuez has recently transferred Remi Soula, head of interest rate trading in Tokyo, as North Asian head of exotic interest rate trading. This is a new role for the bank and is designed to boost CAI's exotic franchise, according to Eddie Lee, head of fixed income at Indosuez in Hong Kong. Soula, who will focus on local currency exotic derivatives primarily for Hong Kong, Korea and Taiwan, was traveling and could not be reached.

Merrill Lynch has hired Sibo Feng, credit derivatives structurer at Bank of America in Tokyo, for a similar position. Mari Kagawa, spokeswoman, said Sibo will focus on building the firm's exotic products capability in the region. Feng, who starts in the coming weeks, will report to Taro Masuyama, head of credit derivatives structuring in Tokyo, who declined comment. Feng could not be reached.

"Clients were gagging to get into the gamma."--Lars Ahlgreen, senior foreign exchange trader at Crédit Agricole Indosuez in London, commenting on traders' desire to snap up short-term euro/Swiss franc options as volatility popped 50 basis points. For complete story, click here.

David Littlewood and David Henriques, global co-heads of structured credit products at the Royal Bank of Scotland, have both resigned. Littlewood said, "David and I have left on good terms," declining to comment on the reason for the departure. Both are working their notice periods at the firm.

Société Générale Asia has started offering coupon-guaranteed first-to-default hybrid notes in Hong Kong. "With spreads so tight, we wanted to offer something more attractive," said Francois de Supervielle, v.p. in the structured derivatives department in Hong Kong. The products dubbed "Summer Hybrid Notes" combine a first-to-default basket with a guaranteed coupon and a corridor interest-rate option linked to dollar LIBOR.

Standard Chartered plans to structure options on the Zambian kwacha as part of its effort to develop an African foreign exchange options market. It started offering options on the Kenyan shilling last year, according to an official familiar with the initiative. He added that plans to structure options on several African currencies, including the Tanzanian shilling, have recently been approved.

Traders were snapping up Swiss franc options against most of the major currencies last week in the short-end of the curve. "Clients were gagging to get into the gamma," said Lars Ahlgreen, senior foreign exchange trader at Credit Agricole Indosuez. This caused euro/Swissie one-month implied volatility to jump to 5.41% Wednesday from 5.1% the previous Friday.