Scotia Capital has merged its U.S. high-yield and high-grade trading, sales, research and origination businesses, according to Frank Pinon, managing director and former head of high grade. The move was made to cut costs and better address the needs of clients, who are increasingly investing across the credit spectrum, Pinon says. He now becomes co-head of the U.S. credit business with Amil Schiaffino, managing director and the former high-yield head.
The firm has also downsized the group from 33 to 25 people, eliminating both junior and senior positions, though no group heads, says Pinon. He says some people left voluntarily, while others were let go. He declined to name the people let go, and their names could not be determined.
In addition to the cutbacks, the firm has shifted a few people to origination from other business groups, so that the origination group is actually larger than it had been before the changes. As of last Thursday Scotia ranked 21st in U.S. high-yield underwriting and 37th in U.S. investment-grade underwriting this year, according to Bloomberg.