ABN AMRO is edging closer to a decision on whether to add a high-yield platform in the U.S., said an official at the firm.
The bank has been holding internal discussions about adding a high-yield platform in New York for years (BW, 9/25/03), but now that it has bulked up its European high-yield effort in its London headquarters, the U.S. expansion is more likely to come to fruition. "It would be a natural addition of the high-yield concern developed in London," said the official.
Last year, ABN AMRO brought on James Courtenay as head of European high-yield and leveraged finance from CIBC World Markets to build its European high-yield operation (BW, 3/12). Courtenay subsequently added professionals to the group (BW, 5/21).
"The back end of credit has become a more efficient and liquid market and a lot of investors have gone down the credit spectrum," added the ABN AMRO official, explaining why it may add a U.S. high-yield business now. ABN AMRO currently offers crossover credits through industry sectors but does not have a dedicated crossover desk in New York and any high-yield effort would presumably extend beyond just former investment-grade names. But the official stressed the firm has no concrete plans at the moment for a high-yield initiative. He said a decision on whether to go ahead with the business could take place this year or next.