Securitization People and Markets

Credit analysts are worried that proposed changes by Moody's Investors Service to its ratings methodologies could have a negative impact on the European corporate credit market. Late last month, Moody's announced it may shorten ratings reviews, permit more responsive actions to market news, change ratings without formal review and streamline the process for establishing ratings outlooks--perhaps eliminating them altogether. Calls to Christopher Mahoney, senior managing director and chairman of Moody's credit policy committee and author of the report, were not returned.

Morgan Stanley is growing its global fixed-income strategy team under Amy Falls, who heads the group out of New York. It has added Carlos Nogueira, a principal who previously did quantitative research in emerging markets and high-yield at the firm, to its global fixed income strategy team. Falls says the group is also looking for a candidate with strong writing skills to help her craft a weekly 10-page research piece. The firm may hire at the v.p. level, though it could also employ a less senior candidate to grow into the position. Nogueira says his new role will have a global focus across asset classes. His previous position has been eliminated.

Patriarch Partners, a New York-based distressed bond investment management boutique, is strengthening its structured finance effort and has hired three collateralized loan obligation analysts for this purpose. All new hires take newly created slots, according to Lynn Tilton, principal.

XL Capital Assurance, the New York-based asset-backed securities guarantor, has hired Steven Katz for a newly created position as a director in its credit group. Katz comes from Woodcliff Lake, N.J. based buy-side fixed-income manager Seix Investment Advisors. Katz will do credit research on diversified financial companies, with an emphasis on auto-finance and home-equity companies, two of the largest sectors within the ABS market. He will report to Patrick Mathis, senior managing director and chief credit officer who heads the five-person credit team. Katz says he made the move because he wanted the opportunity to expand his credit expertise within a smaller company atmosphere.

BNP Paribas has relinquished its ambition to win U.S. high-yield lead underwriting mandates and has parted company with David Weinstein, U.S. head of high-yield origination and capital markets. Instead, the firm will concentrate on developing as a co-manager and shoring up its position in the secondary market, according to an official familiar with the plan. David Barcus, a merchant banker, will lead the U.S. origination business under newly promoted global origination head John Ong. Weinstein and Barcus declined comment. Ong did not return calls.

Dublin-based Goodbody Stockbrokers, the brokerage arm of the AIB Group, is looking to hire a salesperson. Neil Carroll, head of bonds and derivatives products, says the firm wants to grow its product line and client base and will require a new salesperson to do so. Currently, the firm concentrates mainly on government bonds, but wants to expand into credit. Ultimately, Carroll expects to hire credit traders and analysts as well, but the firm will not be pursuing that avenue immediately.

Stephen Penwell, Morgan Stanley's global head of credit research, has been promoted to the new position of head of North American credit sales. He will oversee sales for the firm's investment-grade, high-yield and bank loan businesses. Penwell says it is yet to be determined whether he will continue in his capacity as global head of research, or whether a new global head will be appointed. He says the move is the latest stage in a year-long effort to streamline the organizational structure of the firm's credit business. Last year, Morgan Stanley integrated its high-yield, bank loans, emerging markets and several of its structured product businesses. It also united high-yield and investment-grade research and trading (BW, 8/19).

ORIX Capital Markets (OCM) is looking to hire eight senior fixed-income credit analysts over the next two months to join its 20-person corporate finance group, which invests chiefly in below investment-grade and Latin American debt. The corporate finance group will also move from Baltimore to join its commercial mortgage securities investing and servicing team at its 270-person Dallas headquarters in March, according to Sheppard Davis, head of the group. OCM has built a new trading floor in Dallas to accommodate the group. Davis would not specify total taxable fixed-income assets under management, though he says it is in the "multiple billions" of dollars.

The Russian corporate bond pipeline is beginning to grow and London-based emerging market debt bankers estimate there are up to 20 companies looking to do deals. "Russia is where the action is going to be," says Jan Mutsaers, head of debt capital markets for emerging Europe at ING Barings in London. Mutsaers says ING bankers will be pitching innovative structures in Russia to help lower-rated companies get deals done. Another emerging Europe banker says more Russian blue-chip companies need to come to market before it opens up to the second-tier. Companies such as Gazprom, Tyumen Oil, Sibneft and Vimplecom--a mobile phone services company--are likely to be the first out of the gate, he adds.