Standard & Poor's has recently completed a reorganiztion of its structured products division in New York, creating three new groups, according to BW sister publication Derivatives Week. The new groups are fixed income, equity and an operating vehicle group, according to Richard Gugliada, head of the global CDO group in New York. The three new groups report to Gugliada.
Until about two weeks ago, the division had several different teams covering the cash flow product market, market value CDO products and synthetic collateralized debt obligations and derivatives.
"We kind of had a mishmash of things before the reorganization," says Gugliada. He adds that the plan was prompted by the rating agency's recognition that there needs to be a more concentrated focus on the rapidly growing hedge fund and private equity fund markets, as well as special purpose vehicles. "This will give our customers more continuous coverage from the same person," Gugliada notes.
As part of the plan, David Tesher, who was heading the cash flow coverage, is now heading up the fixed-income group, which covers any cash flow products that use fixed-income as the underlying security. Chris Howley, who was working with Tesher in the cash flow CDO group, is heading up the new equity group, which covers securitization products for hedge funds, distressed funds, private equity funds and mutual funds. The operating vehicle group is being co-headed byNik Khakee in New York and Perry Inglis in London, both of whom where covering synthetic CDO products prior to the reorganization. The operating vehicle group will cover all derivative products and the burgeoning special purpose vehicle market. Their coverage will encompass any investment vehicle that uses structured finance techniques to obtain a counterparty rating," Gugliada says.