Merrill Lynch is expanding its CDO structuring business in Asia and has nabbed four officials from JPMorgan to bolster the initiative. "We've been well-established in cash CDOs in the region, we see [these hires] as an opportunity to round out our overall capabilities," said Taro Masuyama, head of Pacific Rim CDOs at Merrill in Tokyo.
Chandrakant Mohanty has joined as a managing director in structured credit products, handling synthetic CDO structuring and origination for the region from Hong Kong. Manuela Lupu and Hikaru Valtan, credit structurers in Hong Kong, have joined as a v.p. and associate, respectively, in Hong Kong Conan Hales, credit structurer, joins as a v.p. in Tokyo. Lupu, Valtan and Hales now report to Mohanty, who in turn reports to Masuyama.
Merrill has marketed synthetic CDOs out of its Tokyo hub, but is looking to increase its regional presence. Peter Walshe, head of Pacific Rim credit products and rates in Tokyo, said the firm will also look more closely at using its balance sheet. "To stay competitive in the long run you need product innovation and a focused risk profile," he said. The team will balance offering regional origination with Merrill's global product capabilities, he added.
Rival officials said Mohanty and the team are well-known in the region. "We ran into them quite a bit," said one credit head, noting the team was able to leverage off JPMorgan's global strength for synthetic deals. A fixed income head noted, "JPMorgan is a factory for talent out here--a lot of firms have hired their staff to start up or expand their desks." Another recent blow to JPMorgan's business came in June as Dean Rostrom, in structured credit distribution in Tokyo, joined Deutsche Bank to head their CDO marketing business for Japan (DW, 6/20).
Mahesh Bulchandani, Asian head of structured credit at JPMorgan in Hong Kong, did not return messages and Prakash Krishnan, spokesman, declined comment.
