Channel Capital launches CDPC

London-based asset management company Channel Capital Advisors is preparing to launch a new credit derivatives product company (CDPC).

The company, to be called Channel Capital plc, will be registered in Ireland. It will focus on writing credit protection on AAA-rated tranches of portfolios of corporate and sovereign debt, and has licensed risk-management and deal-capture software from Jersey City, New Jersey-based Principia Partners.

Walter Gontarek, chief executive of Channel Capital Advisors, said the CDPC would use the software to handle "our eligible investments, liabilities and hedging derivatives, as well as a complete range of first- and second-generation credit derivatives, including single-name credit default swaps (CDS), basket swaps, CDS on structured finance securities and single-tranche CDOs".