Jefferies & Co. is creating a dedicated mortgage-backed securities business under its Bonds Direct unit and has hired Jim Perillo, senior collateralized-mortgage obligation trader and team leader at Piper Jaffray, to lead the MBS charge. Perillo joined last week as managing director and is charged with building a desk. A call to Perillo was referred to Lee Fensterstock, managing director in New York. He said the firm is actively looking to hire senior MBS salesmen and traders.
Jefferies currently offers MBS through its existing investment-grade capabilities and is now growing a separate MBS focus. Fensterstock said the firm intends for the business to initially comprise four to five traders and up to 15 salesmen. Perillo's departure coincided with Piper's exit from the CMO structuring business (BW, 1/10).
Bonds Direct is an investment-grade institutional dealer that Jefferies acquired late last year.