Mizuho Securities hired the Calyon structured credit team to start a structured credit platform in New York. Led by Alex Rekeda, head of structured credit, Americas, the group has already opened three warehouses and hopes to have three more open before Christmas. Rekeda stressed all of the warehouses Mizuho has opened are with managers Calyon has never worked with. The team did not bring any Calyon deals with it.
The six warehouses it will have open before the holiday are for collateralized loan obligations and collateralized debt obligations of asset-backed securities. In January it will look to do commercial real estate CDOs and managed synthetics.
Twelve members joined the team last Monday and Rekeda anticipates the firm will add two more traders and several structurers. It is looking to hire immediately.
To fill the void, Calyon has brought over a group from London to temporarily work in the U.S. Edouard Bremond, head of European cash CDO structuring, is among the group that has come over. He will be working closely with Zain Abdullah, managing director and head of U.S. credit markets and CDOs. The bank has hired about six or seven individuals in the last two weeks and it hopes to appoint a new head of U.S. cash CDO structuring soon. Abdullah could not name those individuals at this time. He also said it has not been decided whether any of the European transports will stay in the U.S.
The bank hopes to grow from 180 professionals globally to 240 in 2007. Abdullah said a significant percentage should be in the U.S. because the American market has been so active, though he wouldn't give a number. He said he hopes to double its CDO activity next year.