Investment banking firm Greenwich Capital Markets has launched a new business built on the growing use of fixed-income derivatives as relative-value benchmarks for mortgage-backed, asset-backed, and agency securities.
To address this trend, Greenwich Capital has started a derivatives trading business as part of its US Dollar Liquid Products group.
Previously, the company had offered derivative products solely as agent for its parent, National Westminster Bank plc. Now its team of traders and marketers will be acting for Greenwich through its sister company Greenwich Capital Derivatives, with trades guaranteed by parent companies NatWest and The Royal Bank of Scotland Group plc.
Ed Orenstein, head of U.S. Dollar Liquid Products for Greenwich Capital, will oversee the new derivatives business.
"Our aim is to become a premier market maker in US dollar derivative interest rate products emphasizing execution, strategy, and support," said Vincent Tomasi, manager of the derivatives business."