Securitization People and Markets

Merrill Lynch has laid off two high-yield analysts, and reassigned a third. Mike Plancey, a v.p. who covered the paper and forest products sectors confirms that he has been let go. He says he is looking at opportunities on the buy-side. He was at Merrill for five and a half years. Eric Matejevich, a gaming analyst and v.p., declined comment, but a high-yield official formerly at Merrill confirms he was laid off and says Matejevich is also looking for opportunities on the buy-side. The official says Jonathan Savas, a director and wireline telecom analyst, has moved to an unspecified position within another department at Merrill. Savas did not return calls. Clare Schiedermayer, head of high-yield research, did not return calls.

Merrill Lynch has laid off two junk salesmen: Jeff Keith, a director, and Gregory Froehlich, a v.p., according to several buy-side and sell-side high-yield executives who spoke with them. Keith declined comment, other than to say he is currently looking for a new job. Froehlich could not be reached.

The relocation of a swaps trader from Nomura Securities International to Greenwich Capital Markets has set off a bit of a sniping match between the trader and his former boss, Nomura's fixed-income chief Alex Noujaim. The trader,Becker Drane, took Noujaim to task in his letter of resignation when he left in October. Noujaim responded by calling Drane's new boss, GCM co-president Jay Levine, and reportedly criticized Drane and the letter he wrote upon his October exit.

Adam Tashman, Merrill Lynch's senior collateralized debt obligation analyst, was recently laid off according to a structured finance executive at the firm. Tashman's official title is senior specialist in the high-yield strategy department, and he focuses almost exclusively on CDOs. He reported to Brian McManus, a first v.p in high-yield strategy who heads Merrill's CDO research. McManus declined comment. Tashman's voicemail at Merrill says that he is no longer working with the firm and calls were referred to McManus' extension. Tashman could not be reached for comment. With Tashman's departure, McManus is now the only analyst listed for CDO coverage at Merrill.

Bill Wivel, fixed-income portfolio manager at Columbia Partners, in Washington, D.C., is retiring effective Dec.14 after 44 years in the investment management business. Wivel says Gary Dickinson, who has been co-manager with Wivel for the last year, will become sole manager of the firm's $600 million taxable fixed-income portfolio. Wivel says he is leaving the business because, at the age of 69, "It's time to enjoy life." He has been at Columbia Partners for five years, coming over from RIMCO, the investment subsidiary of Riggs Bank, also in Washington. Wivel began managing blended fixed-income and equity accounts in 1957, and has focused exclusively on fixed-income since 1970. He says the biggest change to the business came roughly 10 years ago, when Bloomberg machines became a fixture on portfolio managers' desks. The additional information and analytical tools the Bloomberg provides has only marginally improved managers' performance, but has certainly led to greater trading activity and market volatility.

Thirteen former fixed-income salesmen from Gruntal & Co. LLC's New York corporate bond sales desk have filed a statement of claim--a copy of which was obtained by BondWeek--with the National Association of Securities Dealers, alleging that they were all denied severance after they were terminated on July 25. Similarly, five of the 13 allege that they were denied fair value for the stock they had purchased in privately held Gruntal. Michael Riordan, Gruntal's counsel at Ressler, Amery & Ross of Morristown, N.J., would only acknowledge that he is preparing a response and was uncertain as to whether he could comment on behalf of Gruntal. The claimants have retained Liddle & Robinson of New York as their counsel. An associate with Liddle & Robinson notes that Gruntal has to file a response with the NASD by Dec. 18.

HSBC is planning to build a European credit strategy team as part of its effort to enhance its credit research group. Frances Hutchinson, London-based head of fixed-income credit research, says the firm is evaluating what the function of the credit strategy team will be and what products it will provide. A timeline for the group's establishment has not yet been set, but HSBC will be in the market to hire credit strategists, she adds.

Last week's successful $400 million issue by Nationwide Mutual Insurance shows there is still strong demand for property and casualty insurance paper, says Greg Habeeb, portfolio manager at Calvert Asset Management in Bethesda, Md. Because, bonds of large household property and casualty insurance names, such as Allstate and American International Group, have more than recovered their pre-disaster spread levels, Habeeb says the real premium is in lesser-known names. Recent purchases he has made include bonds of Liberty Mutual Insurance in 30- and 100-year maturities. He says Liberty is a comparable credit to Nationwide, although it trades well behind that name. Last week, the Liberty 7.875% notes of '26 were trading at 345 over Treasuries, while the Nationwide paper was at a spread of 305 basis points over the curve. Other purchases Calvert has made include Lumberman's Mutual Casualty Insurance,XL Capital and Renaissance Re.

Lloyds TSB may build its own asset-backed commercial paper conduit to help its corporate banking clients raise off-balance sheet debt. David Brealey, London-based head of securitization and corporate finance, says that at present the firm uses third-party asset-backed CP conduits, but creating its own, which would be $5 billion in size, could be cost-effective. Lloyds uses two CP conduits structured by other firms, and Brealey declined to name the outside firms or the amount of assets allocated to them. To head up the development of conduit capabilities, Lloyds has hired Mark Escott as director of securitization. He joins from Bank Gesellschaft, where he held a similar role. Brealey says that if the firm decides to go forward with the CP conduit, more hires will be made in the new year. Lloyds' securitization team currently has 18 members.