Securitization People and Markets

SG, the corporate and investment banking arm of Société Générale, is looking to bulk up its asset-backed banking team in London. Richard Hopkin, the newly hired deputy head of the securitization team, says a few new hires will be necessary to handle the firm's heavy deal pipeline, declining to say how many it has lined up. There are 10 people currently in the London ABS group. Prior to joining SG, Hopkin was a managing director at Deutsche Bank in London, where he was responsible for commercial paper conduits, asset-backed commercial paper conduits and developing the firm's consumer term ABS business. Hopkin, who joined earlier in January and is responsible for Northern European and U.K. business, reports to Jean-François Despoux, Paris-based head of securitization.

Though investment banks and investors are increasingly turning a deaf ear to smaller high-yield issuers, there is convincing evidence that they are missing an opportunity, according to Sherri Andrews, head of high-yield research at BNP Paribas. Andrews points to statistics from Credit Suisse First Boston demonstrating that small issues significantly outperformed deals larger than $300 million last year. While deals larger than $300 million returned only 1.04%, issues between $101-$299 million returned 11.37%, according to this report. Deals $100 million and smaller did the best of all, returning 13.44% last year. Andrews says the average deals in 1997 and 1998 were much smaller. "As mutual funds got larger, it became increasingly difficult to sell them these small transactions. One of the themes last year was that smaller issuers basically couldn't tap the market," she adds.

Banc of America Securities has moved a couple of trading positions internally, according to Pat Beranek, a consumer asset-backed securities trader. Beranek used to work in the high-grade syndicate desk and has been internally moved to the asset-backed securities syndicate desk, where he will report to Christopher Hentemann, head of ABS syndicate. Beranek used to report to Jeff Kane, managing director and head of global high-grade syndicate. Kane says Beranek's move merely reflects a restructuring change as Beranek's product used to be covered in the high-grade syndicate area and has now been transferred onto the ABS desk. Beranek will focus on primary issuance for consumer ABS origination, including credit-card and automotive-backed securities.

AIG Global Investment Group is looking to hire a senior investment manager for its fixed-income business in London. It is unclear whether the new hire will replace David Furey, the former head of fixed-income in London, who recently left. Furey's next destination is not known, and firm officials declined to comment. AIG is looking for a candidate to manage is

Asset-backed finance veteran Andrew Yuder, has joined ING Barings as managing director of the firm's securitization group after leaving Credit Suisse First Boston last month. Yuder will be responsible for securitization origination with a focus on middle markets and less-commoditized asset classes. He reports to John Costa, head of securitization for the Americas at ING. Yuder said his focus will be on securitizing esoteric assets and niche markets including small businesses, equipment leases, and timeshares."I left because I thought there was more opportunity to do middle-market business here than at First Boston," said Yuder.

Barry Bobrow, previously head of syndicated finance for Banc of America Securities in London, has returned to the U.S. as a managing director on the loan syndication desk in Charlotte working in the asset-based lending group. He will report to Glenn Stewart, head of the loan syndication desk. A B of A spokeswoman said the newly created position is part of a commitment to expand in the sector, though she could not provide comment on the current or expected size of the group. She said he returned to the U.S. after a 16-month stint in London and will work to broaden and deepen relationships with investors. Bobrow was replaced in London by Parker Knight.

CIBC World Markets is shuffling responsibilities among its existing loan group following the Jan. 11 resignation of corporate lending co-headFrank Brittan.Richard Hassard, co-head of CIBC's credit capital markets arm and Brittan's ex-boss, confirmed Brittan's resignation and said it was for personal reasons, stressing that Brittan was not let go by the firm. Hassard noted that a decision on whether to replace Brittan has not been made. Brittan was responsible for lending within the capital market division. As of last week he had not joined another firm.

David Gavoor, a director of syndicated finance at Credit Suisse First Boston, left the firm last week as a result of its merger with Donaldson, Lufkin & Jenrette. Gavoor, who structured and sold real estate bank loans and other loans, said he declined an offer to handle all real estate syndications for the combined entity because of its narrow scope. He said he is now is in talks with other firms. Ironically, just last year he left the DLJ syndication desk to launch the CSFB real estate syndications desk (REFI, 6/21/99).

Enron Credit's London-based head of syndication has left the company and will soon be landing at CIBC World Markets. Rabin Barker-Bennett will join CIBC's debt capital markets group in London at the end of the month, according to an official familiar with the move. Lisa Russell, a CIBC spokeswoman, did not comment and Barker-Bennett could not be reached.