Robert Alloway, high-yield credit default swap trader, has taken over temporarily trading loan-only credit default swaps at Lehman Brothers, following the departure of Jeremy Vogelmann in July to join Barclays Capital (CIN, 7/31). He will continue to trade high-yield CDS, as well. Alloway declined comment.
Lehman won the best in LCDS category at Credit Investment News' Annual Best Trading Desk Awards this year. The bank, along with Credit Suisse, is one of the most active desks on the Street for the product. No time frame has been set to fill the LCDS spot permanently; however, it is believed that for larger more active names, the current CDS trder will also trade LCDS on that name. For example, a CDS dealer trading Georgia-Pacific Corp. would then also begin trading LCDS on Georgia-Pacific. It is expected that one individual will begin to trade the more loan-specific names at some point.
Alloway joined Lehman from Goldman Sachs at the beginning of March and had worked with Vogelmann a bit on LCDS and had worked, from New York, on Lehman's LCDS in Europe.