KDB sets up credit derivatives desk in Seoul

He said that while regulations requiring each transaction to be reported to the Bank of Korea and local watchdogs have slowed the potential growth of the market, volumes have doubled from last year. He added that he expected the market to continue to grow next year.

The three-strong credit derivatives and asset-backed securities (ABS) team will focus on structuring credit default swaps, credit-linked notes, total return swaps and collateralised debt obligations (CDOs). JS Chung will head the unit. Chung was previously a member of KDB's old derivatives unit.

This unit was effectively split up to produce four specialised teams: credit derivatives and ABS, synthetic products and options, fixed-income derivatives and a middle-office team. The bank also plans to add a new financial products team that will work on developing new credit, interest rate and equity derivative products by the end of July, said HG Chung. But he said there were no plans to establish a dedicated equity derivatives team this year.

KDB plans to issue its first balance-sheet synthetic CDO for a client in the next two to three months, but Chung declined to comment further on the deal.

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact info@risk.net or view our subscription options here: http://subscriptions.risk.net/subscribe

You are currently unable to copy this content. Please contact info@risk.net to find out more.

You need to sign in to use this feature. If you don’t have a Risk.net account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here