|Name: Matthew Smith|
Institution: Deutsche Bank
Date promoted: June 2004
Title: Head of secondary loan trading
Previous job before promotion: European loans trader
Years in capital markets: Seven
First job in capital markets: Leveraged syndications team at Barclays Capital
Favourite deal worked on: Purchase of Danske Bank's leveraged loan portfolio, December 2004
Lives in: London
Heroes: Gordon Brown, Jocky Wilson (darts player)
Matthew Smith was promoted to head of secondary loan trading at Deutsche Bank in June 2004 and his appointment has coincided with a period of change in the secondary loan market.
The growing number of CLOs investing in European assets; cross Atlantic capital flows from US fund managers looking to diversify their assets; and hedge funds looking to invest in cross-over credits — all have added to the breadth and liquidity of Europe's secondary trading platforms.
"There is a new investor base with new demands in terms of trading strategies, liquidity and research," says Smith, who points out that Deutsche's primary and secondary loans sales teams were merged two years ago in response to the emergence of these new investors.
"Investors using the secondary market are taking very real credit risk because of rising leverage multiples and the growing number of trades down the capital structure," he continues. "And as around 60% of our business involves deals that Deutsche was not involved in during primary syndication, it is up to our trading desk to provide them with an overview."
During the first five months of 2005, Smith says, Deutsche has doubled the number and volume of trades executed compared with the last five months of 2004.
Smith started out on Barclays Bank's graduate scheme in 1995, before moving into the debt capital markets in 1998 as part of Barclays Capital's leveraged loan syndications team.
He joined Deutsche Bank in September 1999 as an analyst in the bank's syndications department before moving to its secondary trading desk in the summer of 2001.
"With the continued growth of the new issue market and expansion of the investor base, the European loan market demands a fully committed sales, trading and research team," says Smith.
Smith lives in London and reports to Brian Bassett, head of Deutsche Bank's high yield business and loan syndications group.