CRT Capital Group, a research and brokerage firm based in Stamford, Conn., is actively seeking a trader and three or four salespeople this year to ramp up its presence as a specialized brokerage firm in the loan market. The salespeople will cover banks, insurance companies, and other primary lenders that are looking to sell pieces of specific credits, said Michael Vaughn Jr., managing member of CRT.
The firm's timing is based on two current trends. First, Vaughn noted that the amount of risk capital invested by traditional buyers of loans has gone down. CRT is looking to bring a new pool of capital to the market by tapping its network of buyers. "It's a vibrant business where 'x' amount of the assets come out," Vaughn said of the distressed loan market. In addition, the timing is opportune because of the field of available talent in the market. "A game of musical chairs is going on downtown. The music has stopped and there are less chairs than before," he explained.
While the firm has managed to get in the middle of loan trades in the past because of its presence in both the high-yield and convertible markets, this effort is a new push. Already having a footprint in troubled and credit intensive names from the high-yield side, the firm is looking to be involved in both bigger, more liquid loans as well as off-the-run names. CRT also wants to add value to the market through its research effort.
Vaughn explained that the firm is looking for people to source loans from original buyers and also for individuals who have relationships with non-traditional buyers distressed and opportunistic players. Most recently the firm has brought on board Patrick Keleher as a senior loan sales member. Keleher was formerly on the Dresdner Bank syndication desk. He replaced Paul Baeri, who has since moved to Keefe, Bruyette & Woods, late last year. Baeri was a senior v.p. and principal of high-yield sales at CRT, but his position has since morphed, explained Vaughn.