Six fixed-income professionals have recently left 40/86 Advisors, including the individuals responsible for two seasoned collateralized debt obligations it manages. Jeff Lovell, v.p., director of research, and Tom Hauser, v.p., high-yield portfolio manager, recently left the Indianapolis-area buy-sider, tripping the so-called key man clause of Ascension High-Grade CDO Ltd. The 2001 deal is backed by cash flows from investment-grade debt and is performing to expectations, according to a rating agency official.
Still, the deal's indenture calls for the collateral manager to nominate replacements for the key personnel and 40/86 has tapped Amy Gibson, v.p., who runs the collateralized loan obligation business, to take over the CDO side as well, according to Eric Johnson, president in Carmel, Ind. He said the departures are related to organizational and cultural changes the firm is in the process of executing. The changes will merge its product silos and streamline its activities, he explained.
Lovell's departure comes shortly after he was promoted to director of research (BW, 5/3). He did not return a call to his mobile phone. The other departing professionals are Bob Amenta, v.p. senior securities analyst; Mark Prenger, second v.p., senior securities analyst; Matt Nelson, assistant v.p., senior securities analyst; and Jeff Hutz, second v.p., senior securities analyst.