TD Securities is looking to hire two to three U.S. institutional derivatives marketers focusing on structured credit products within the next six months. The bank recently hired Paula Klara, senior v.p.-credit derivatives marketing and structuring at Donaldson, Lufkin & Jenrette in New York, to head up the group, which has two other marketers, said Joe Hegener, managing director, global head of high-yield credit derivatives, collateralized debt obligations, and co-head of loan trading and sales in New York.
Deal flow in structured credit products has increased dramatically over the last several months, and the bank is hence aiming to beef up U.S. distribution, said Hegener. The credit markets have seen certain anomalies in recent months, as names such as PG&E have moved from high-grade to distressed status in a matter of weeks. "That never used to happen," said Hegener. These changes have driven home the need for diversification, he said, which synthetic CDO's, for example, can offer. He added that the group also markets fixed-income derivatives, equity derivatives, and hybrids.
Klara cited personal reasons for leaving DLJ and declined to elaborate. She noted that TD attracted her because of its integrated debt platform across loans, bonds, and derivatives. She left around the time of DLJ's merger with Credit Suisse First Boston but could only begin working now at TD because of non-compete clauses in her contract at DLJ. At TD, she reports to Hegener. Officials at CSFB did not return calls by press time.
