Dresdner Kleinwort Wasserstein is reorganizing its U.S. credit business, according to Neil Neilinger, head of credit products at the firm. Neilinger says the firm plans to hire several more investment-grade traders in the third quarter, and has already begun interviewing people. He says the firm is focusing in particular on the industrial and telecom sectors. Neilinger describes Dresdner as "developing its credit business in emerging markets, high yield, and high grade," but would not elaborate further, and did not return repeated calls.
As part of this reorganization, Neilinger says Dresdner will be moving its investment-grade offices in New York to the midtown offices of Grantchester Securities, the high-yield shop Dresdner acquired late last year when it purchased Wasserstein Parella. The physical relocation is part of an effort to combine the investment-grade and junk businesses to accommodate the increasing prevalence of "fallen angels"--bonds that fall out of investment-grade status into junk territory. Other firms, such as Merrill Lynch, have been making similar organizational changes (BW, 5/28).