Securitization People and Markets

Merrill Lynch managed to retain collateralized mortgage obligation trading and sales veteran Laura Zwak after she announced her intention to join Morgan Stanley's growing CMO effort last Tuesday, according to an individual close to the situation. This insider says that increased compensation was the basis for her decision to stay at Merrill. Zwak was unavailable to comment.

Nomura Securities International has hired Jean-Claude Khoury to bulk up its London-based securitization team. He will work on asset finance transactions and securitizations, a Nomura official says. He moves over from Deutsche Bank, where he was a v.p. covering conduits, collateralized loan obligations and residential mortgage-backed deals. Khoury left Deutsche Bank earlier this summer amidst a departmental reshuffle (BW, 7/22). He will report to Tariq Rafique, head of securitization and asset finance. Rafique says he still has some hiring to do.

The high-yield auto parts sector will remain under pressure for the foreseeable future as car companies continue to squeeze parts manufacturers on pricing, according to one buy-side analyst and one sell-sider. The buy-side analyst says the firm where he works, a Midwestern money manager, recently sold its Dana Corp. 9% notes of '11 (Ba3/BB) at 96, on the view that risks remain weighted to the downside because the industry is very competitive. He says the firm might buy the bonds back if they dip a few points, but would not sell more unless it finds a decent replacement that trades at a lower price.

The recent influx of new cash caused the higher-rated issues to trade higher last week, according to some traders. Others say the market merely trod water, though it clearly outperformed equities. Jefferson Smurfit priced a $700 million deal--the most sizeable new junk issue in several weeks. Here is selected action.

Asset-backed bankers and traders from Credit Suisse First Boston and Dresdner Kleinwort Wasserstein recently undertook gruelling sporting feats for charity. A six-man group from CSFB including ABS syndicate banker Adrian Carr swam the English Channel in aid of NCH (formerly National Children's Home). The four-man DrKW team--Charles Hyatt, Richard Kemmish, Fraser Malcolm and Nick Morgan--trekked a 54-mile stretch of the treacherous West Highland Way in Scotland as part of the State Street Caledonian Challenge, which benefits various Scottish charities. The aim of the challenge is to complete the hike in 24 hours.

At least four high-yield professionals who were let go from a unit of Citigroup Asset Management in July (BW, 7/14), have found new positions, according to a person familiar with the situation.

Barclays Capital has hired Grant Ashton to run euro- and dollar-denominated bond high-grade trading for Europe. The position is newly created, because the firm has seen significant growth in the volume of this business and expects more, says a firm spokeswoman. Grant, who joins from Schroder Salomon Smith Barney, will report to John Kreitler, global head of credit trading. At SSSB, Ashton was head of European currency Eurobond trading. A spokeswoman at SSSB says Ashton's position has not yet been filled.

Barclays Capital in New York has hired Steve Madsen, a utilities trader, from Deutsche Bank, according to traders at both firms. Madsen becomes the second corporate bond trader to leave the German bank for its British rival in recent weeks. Mark Jicka, former head of corporate bond trading at Deutsche Bank, also left to join Barclays (BW, 8/11). Jicka will join Barclays in roughly a month, according to an official there. Madsen could not be reached, and his start date could not be determined. John Kreitler, Barclays' London-based head of global credit trading, did not return a call. Steve Murphy, Deutsche Bank's U.S. head of corporate bond trading, referred questions to Ted Meyer, a spokesman for the firm, who confirmed the departure and says his responsibilities will be handled internally.

Bank of America has hired Martin Leppin for its European fixed-income origination team. Leppin, who moves over from Lehman Brothers, where he held a similar role, will cover frequent borrowers and financial institutions in Austria and Germany along with Dimitri Toseland. Leppin was hired to support the growth seen on the frequent issuers desk, says Toseland. Calls to a Lehman spokeswoman seeking details of Leppin's replacement were not returned.