Crédit Agricole Indosuez (CAI) is making a major push into the European fixed-income market aimed at increasing its presence in the corporate, government and asset-backed credit markets as well as becoming a key credit derivatives player. "We don't want to be a bulge bracket firm, but a major player in terms of credit, complex credit derivatives and risk management," Thierry Sciard, global head of fixed-income in Paris, told BW.
As part of the restructuring, CAI has hired Peter Kappel, head of ABS at Dresdner Kleinwort Wasserstein, to establish an asset-backed team in London, and has also recruited Willy Uffer, global head of fixed-income atDZ Bank, as global head of bank and financial institution coverage for fixed income in Frankfurt. Previously, CAI's ABS business was comprised mostly of conduit and residential mortgage-backed securitizations originated in Paris, according to Kappel. Now, CAI wants to expand into commercial mortgage-backed securitizations and whole business deals throughout Europe. Uffer could not be reached for comment.
CAI is centralizing its fixed-income trading operations to London and Paris, Sciard continues, adding that traders in Milan and Madrid have been given the opportunity to move to the U.K. or France. "We need to have better diversification in the firm and will [give preference to] non-French for most of the hires," Sciard says. In addition, the firm is looking to hire credit derivatives structurers in Paris, London, Milan, New York, Hong Kong and Tokyo and wants to establish a credit arbitrage business including research, portfolio modeling and trading.
Sciard is also planning to add fixed-income marketers in London, Paris, Milan, Frankfurt, Stockholm and Madrid. He expects ultimately to have 30 marketers in Frankfurt, 20 to 25 in both Milan and Madrid and about 12 in Stockholm.
One senior fixed-income official in London believes the timing of CAI's expansion drive is fortuitous. "I heard [CAI] was up to something, but didn't know it was such a big push."