UBS Securities is stepping back into the covered bond business and has hired two top professionals from Deutsche Bank to spearhead the effort, according to DW sister publication BondWeek. The firm closed its covered bond desk around two years ago, according to one market participant. Dirk Burmeister and Haiko Heuer, who will start in Frankfurt early next year, report to Stephen Bell, global head of trading. Bell was traveling and did not respond to an e-mail. Burmeister, who worked as a senior trader, and Heuer, who was a structured products specialist at the German bank, will work in similar roles at UBS. Samantha Smith, a UBS spokeswoman, did not comment by press time.
Aside from the debut of the U.K.'s first covered bond this year, other European countries such as Italy, Sweden, Norway, Portugal and the Netherlands are reportedly seeking to make their first foray into the covered bond market. Sweden passed covered bond legislation earlier this month and Norway passed a law earlier this year.
