Salomon Smith Barney has put its global synthetic and cash flow collateralized debt obligation businesses under one roof, according to DW sister publication BondWeek. The new group, dubbed Global Portfolio Solutions, is globally co-headed by Janice Warne, global head of structured bonds in New York, and Sumit Roy, global head of credit derivatives in New York. Both keep their former assignments in addition to co-heading the new group.
Rick Caplan, Nestor Dominguez and Doug Warren will co-head the U.S. operation, while Tim Beaulac and Alan Shaffran will co-head the European effort from London. Beaulac was the co-head of U.S. cash flow CDOs with Dominguez in New York, but is transferring for his new role. All five report to Warne and Roy. They either did not return calls or declined comments. Dan Noonan, spokesman in New York, declined comment.
The group is being formed in response to the growing convergence of cash and credit derivative products in the origination of CDO transactions, according to an internal memo. The combined businesses will offer collateral managers a single shop and a coherent pitch on the sell-side.
However, Salomon is not the first house to merge its CDO desks. Major firms, including JPMorgan, Lehman Brothers and ABN AMRO, have already integrated their businesses.