Six Treasury professionals have headed for the door at Credit Suisse First Boston to join the increasingly expansive New York operation of HSBC Securities, with a rival dealer calling the departures a "serious blow" to CSFB. CSFB is considered a top 10 primary dealer in the Treasury market and HSBC ranks a few notches below it.
On the trading side, Patrick Haskell, global co-head of dollar interest-rate trading, and Greg Bartoli and Cliff Mulry, both Treasury traders, have left CSFB. On the sales front, Michael Furman, co-head of U.S. interest-rate product sales, and salesmen Joe McNamara and Tim Hanson have also exited.
They are set to join HSBC soon, according to an official close to CSFB, though Jim Combias, head of Treasury trading at HSBC, would only say the firm is reorganizing its Treasury desks and declined further comment.
One trading head said dwindling profit margins in Treasuries caused by greater transparency in the market is leading firms to aggressively hire top producers from their competitors. "Some of the smaller banks recognize that Treasuries are the first entry point to the customer base and the shrewder banks know the amount of money invested in this area pays off in the long run," he said.
At CSFB, Bartoli and Mulry reported to Haskell, who reported to Jim Healy, global head of fixed income. Furman reported to Robert Griffith, head of North American sales. Both Hanson and McNamara reported to Furman. Haskell will be replaced by Jim Toya, managing director and Treasury trader, who was also reportedly considering leaving for HSBC. Pen Pendleton, CSFB spokesman, declined comment on replacements for the other professionals.
Calls to Haskell, Furman, Bartoli and Griffith were not returned. McNamara declined comment. Calls to Mulry, Hanson and Healy were referred to Pendleton, who declined to comment on remarks by rival firms regarding the possible impact of the departures on CSFB. Juanita Gutierrez, HSBC spokeswoman, also declined comment.
