Patrick Steiner, head of European high-yield and high-yield telecom research at J.P. Morgan Securities in London, will become a principal at Octagon Credit Investors, according to a J.P. Morgan insider. Octagon is a leveraged loan and high-yield private equity investment firm with some $1.75 billion of assets under management. It is owned by its senior management andJ.P. Morgan Chase & Co., but independently operated. James Ferguson, who is still a senior portfolio manager, founded it in 1994. Calls to Ferguson and Steiner were not returned.
The insider at Morgan sees the move as a great opportunity for Steiner. However, a top high-yield buysider in London is surprised by the move, saying it's unusual for sellside executives to move to the buyside, can mean a significant pay cut. Katherine McCormick, head of industrials and distressed debt, will reportedly take over as head of European high-yield research. She could not be reached for comment.