RBC Capital Markets is merging its cash and synthetic investment grade credit business in response to convergence between the two markets, according to Walter Gontarek, head of global credit products in London. "The merger of these businesses is in response to investor demand for one-stop credit products shopping and the need to manage cash and synthetic credit liabilities under one management structure," Gontarek added. RBC's global credit products unit will now handle synthetic investment grade credit risk in loan trading, corporate bonds, credit derivatives and synthetic collateralized debt obligations.
As part of the merger RBC is building up its North American operation, Gontarek said. The firm has moved several traders from London to New York, including Simon Howard-Glossop, head of global credit trading. RBC is also looking to recruit credit professionals for the New York office, Gontarek said. The New York department currently has about 14 professionals. The firm is operating out of a temporary facility in SoHo, and plans to move back to its headquarters at One Liberty Plaza within the next several weeks.
