Fixed-income houses including Morgan Stanley, Credit Suisse First Boston, and J.P. Morgan Securities are planning to execute contingency plans in the face of the upcoming Republican National Convention. The Grand Old Party's party begins later this week and promises to at least bring crippling gridlock to midtown New York--and possibly much worse.
Morgan Stanley plans to send many of its New York employees to work out of its recently completed Purchase, N.Y.-office, about 30 miles north of Manhattan, which it built after 9/11. Fixed-income professionals from the Times Square-area office will be joining the municipal and commodity groups, which have relocated permanently, during the convention. "Some professionals will be working from home and some will go to Westchester," said one Morgan Stanley official. However, the foreign exchange group will remain in New York during the convention.
CSFB, meanwhile, is sending half of its corporate bond traders to its office in Jersey City, N.J., according to a trader at the firm. "We're splitting up trading books and sending one person to Jersey City and keeping one in Manhattan to manage risk. That way, in case anything does happen, we'll still have someone around to trade," said the trader.
As for J.P. Morgan, it is allowing its employees to work from remote locations or telecommuting during the convention, said an official at the firm.
The contingency plans are not limited to the sell-side. TIAA-CREF is taking advantage of the opportunity to send many of its New York employees to work out of Charlotte, N.C., as well as other satellite offices. "All of our assets to date are in New York, which is not good risk management," said one official at Teachers. He declined to detail its specific plans.