Voldstad on the birth of DPCs

Connie Voldstad was head of JP Morgan's first dedicated swaps desk, established Merrill Lynch's AAA-rated derivatives product company, and was one of the six-strong team charged with winding down Long-Term Capital Management. His latest project is a new AAA-rated derivatives product company, in partnership with Bank of Montreal. By Nick Sawyer

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Credit derivatives product companies (CDPCs) have suddenly become all the rage. Along with incumbents Primus Guaranty and New York-based Athilon Capital, some new entrants have emerged - New York-based Invicta Credit being the most recent - and more are set to follow. At the start of this year, Moody's Investors Service revealed that it is evaluating 24 proposals for CPDCs - six from Europe and 18 from the US.

One of these is Pallium Investment Management, a joint venture between Bank of

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