ABN Amro steps up credit derivatives effort

Dutch bank ABN Amro is steadily building up its credit derivatives team under Arnie Groes, its new head of global credit derivatives.

Groes has hired Matt Chauvel from General Re Securities as a credit derivatives trader in London. Gen Re Securities is currently being unwound by its ultimate parent Warren Buffet's Berkshire Hathaway.

"Matt is the first in a number of hires. After Easter expect some more," Groes told RiskNews.

The credit derivatives market is expanding rapidly, with the notional amount outstanding increasing from $108 billion to $694 billion between end-June 1998 and end-June 2001, according to the Bank for International Settlements.