TOKYO -(Dow Jones)- Mizuho Corporate Bank will soon start its own hedge-fund operations by spinning off some of its proprietary trading divisions in New York and London and letting them accept fundsfrom external investors, a source familiar with the situation said Monday.
Mizuho Corporate Bank, the wholesale banking unit of Mizuho Financial Group Inc. (8411.TO), recently set up a wholly owned hedge-fund advisory company in New York.
The Japanese bank’s London-based dealers have also set up another hedge fund. By forming a business alliance with the London-based company, Mizuho Corporate Bank will receive a portion of the hedge-fund company’s profits.
