GFI unit links up with credit hedge fund manager

GFI’s Christopher Street Capital unit and credit hedge fund manager Credaris have announced an agreement to work together in credit. Although the announcement gives few details of the partnership, it is understood that Credaris will provide Christopher Street with input in analysing and pricing illiquid structured credit products. In return, Credaris hopes to benefit from new relationships that Christopher Street can bring.

“We see it as a mechanism to share our competency with more people on the buy-side who we would want to work for,” says Credaris head Andrew Donaldson. “In return, they get to benefit from our sophisticated pricing tools and an independent perspective supported by research.”

Christopher Street is an arms-length brokerage of GFI which, unlike the main interdealer business, works buy-side clients. As first reported in Creditflux, it recently hired former Barclays Capital cash CDO head Ed Cahill to beef up its capabilities in structured credit.

The link-up with Credaris is not thought to have any exclusivity. That is, Christopher Street will not be under any requirement to offer Credaris the opportunity to bid on particular positions.