Credit Suisse First Boston is restructuring its credit derivatives operation in Japan and Asia, a move that will entail centralizing its Asia credit derivatives desk in Hong Kong from Singapore as well as moving its two most senior credit derivatives professionals in Tokyo to London. Headhunters and rival bankers said the move is part of CSFB's on-going effort to cut costs, directed by John Mack, ceo. Credit derivatives professionals at CSFB declined comment, as did Isamu Kajino, spokesman in Tokyo. Sanjeev Gupta, global head of credit derivatives in London, did not return messages.
In the reorganization, Sam Vulakh, director, and Vaibhav Piplapure, v.p., both in the credit derivatives department in Tokyo, will relocate to London in the coming months. Vulakh, who had been responsible for flow business in Tokyo, will take the new position of head of trading for Japanese credits with a greater focus on structured products, according to an official familiar with the move.
Market participants estimated the credit desk to have about six staffers. The move comes a little over a year since Vulakh joined from Bear Stearns to kick-start CSFB's credit trading operation in Japan (DW, 7/30/01). Vulakh and Piplapure were traveling and could not be reached and the fate of the other staff in Tokyo could not be determined.
"CSFB is looking for ways to consolidate," said a credit head at a rival firm in Tokyo. Vulakh, who is regarded as a strong trader, and Piplapure would be able to cover the Japanese market from London and also trade the more liquid European market, he added. The move follows a recent restructuring in which CSFB combined its fixed income and equity groups into a new securities division (DW, 7/21), as well as rounds of staff cuts across Asia. One official familiar with CSFB said the firm has cut some 50 staff in Tokyo in recent months.
CSFB's decision to transfer its Asia ex-Japan credit derivatives trading team in Singapore to Hong Kong in the first quarter will unite the operation under Adam Sticpewich, managing director of the emerging markets group in Hong Kong, who also runs the credit business for Asia ex-Japan. "This makes sense, since their regional head is in Hong Kong. There's no need for two desks," commented a market official. Sticpewich referred questions to a spokesman, who declined comment.
