Merrill Lynch is bolstering its collateralized loan obligations business and has hired Wolfgang Schubert, v.p. in structured credit at J.P. Morgan, according to Derivatives Week, an LMW sister publication. The firm has a strong CDO franchise in asset-backed deals, but has not made the same impact in high-yield deals referencing loans, noted rivals. Schubert declined comment and Chris Ricciardi, managing director to whom Schubert reports, did not return calls.
Merrill's rivals said it is undertaking an ambitious growth strategy in its CDO business and has made several key hires to the division, including Ricciardi who joined from Credit Suisse First Boston last year. At J.P. Morgan, Schubert reported to Maleyne Syracuse, managing director in global originations, structuring and execution, who did not respond to messages.