Paul Travers, the head of the bank loan team at Indosuez Capital, has left the firm ahead of the planned merger with Credit Lyonnais. Michael Walsh, general counsel of Credit Agricole Indosuez, said Travers is pursuing opportunities outside of the firm. He added that Indosuez still has a good team with plenty of experience. Charles Kobayashi, who was hired by Travers at the end of 2001 from Orix USA, is now the head portfolio manager for the funds, he noted. Kobayashi referred questions to Walsh.
One loan investor speculated that the departure of Travers could propel investors in the collateralized debt obligations to look to change the manager. But Walsh said that would not be the case, noting that the requirements of the indentures in the CDOs that Indosuez manages are being met by the new arrangements in place. Furthermore, no key man provision has been triggered by his departure and investors have not indicated that they would want management to change, he said.
One portfolio manager made the point that this is very different from when the Indosuez CDO team bolted for RBC Capital Markets. At that time investors in Indosuez Capital Funding IV, a $1.3 billion CDO, voted to switch management over to RBC and Indosuez had to negotiate to keep control of the other CDOs. Travers was brought in from Bear Stearns to rebuild a team and steady the ship (LMW, 8/11/02). Travers did not return requests for comment relayed through Walsh.