UBS To Merge Credit Trading Biz

dw.gifUBS is merging its corporate bond and credit derivative trading operations to increase efficiency as these separate markets increasingly converge. The firm is combining the businesses into a singe credit platform that will encompass investment-grade, high-yield and emerging market credit trading, according to an internal memo from Robert Wolf, global head of fixed income. The merger will not result in any redundancies, according to a representative for Wolf, who was unable to comment before press time.

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.