Goldman Sachs has reconfigured its London-based collateralized debt obligation group. The firm has split its synthetic and cash CDO teams and brought the cash business into the same group with principal finance and securitization, according to an industry official. The synthetic CDO group is now a stand-alone entity.
A year and a half ago, Goldman merged its cash and synthetic groupsÑas was the industry-wide trend. However, since then, the synthetic business has grown rapidly and the cash side has declined, noted the official. Accordingly, the firm decided to focus on synthetic deals and bring the cash business into the securitization and principal finance group.
The entire CDO team had been headed by Alastair Borthwick, managing director. Borthwick now heads the cash CDO business and is working on principal finance and securitizations as well. The synthetic CDO team now reports to Pablo Salame, head of credit trading in London.
