UBS To Merge Credit Trading Biz
UBS is merging its corporate bond and credit derivative trading operations to increase efficiency as these separate markets increasingly converge.
In its move, UBS is becoming the latest dealer to merge credit trading, following Banc of America Securities, Deutsche Bank and J.P. Morgan Securities. Banc of America said late last year it would combine the two groups while dealers including Deutsche Bank, J.P. Morgan and Goldman Sachs have also done so.
After the merger, which is effective immediately, UBS will run one credit trading group under Sal Naro and Stephen Bell, managing directors, in the U.S. and U.K., respectively. As part of their responsibilities, Naro will run the structured business and Bell will focus on the flow side.
The merger is being done in part to cut infrastructure costs related to credit trading, according to the memo, which did not specify how much the move will save in overhead. Click here to read the full memo.