Securitization People and Markets

OppenheimerFunds has added John Johnson, a high-yield analyst, to cover media and financial credits, according to Tom Reedy, co-head of high yield with David Negri at the New York-based money manager. Johnson replaces an analyst who left the firm some two months ago. Reedy says the firm is interviewing to replace another analyst who left some two months ago. The new hire will follow telecom and cable. He declined to name the two analysts who left.

Citibank/Schroder Salomon Smith Barney's only European securitization analyst, Shaker Sundaram, has left the firm. Sundaram has joined UBS Warburg's London-based fixed-income distribution team as a salesman specializing in asset-backeds, according to UBS officials. The position is newly created. Sundaram reports to Emmanuel Bucaille and David Wishnow, co-heads of bank and insurance sales. Calls to officials at SSSB were not returned.

As the broader rally in corporate spreads continues the primary market in corporate debt has returned from the grave in the past week with over $13 billion of deals finding their way into the ready hands of investors and several billion more slated to come before the end of the month. Even with this late surge of issuance, volume for the full month of August will remain light ($25-30 billion) compared to the deluge of supply we were experiencing earlier this year but the latest deals provide a stark contrast to the frozen state of the market in July. Much of the recent buoyancy has been attributed to the passing of the relatively uneventful passing of the August 14 SEC sign-off deadline and although the impact of this is clear, there are other reasons as well for the stronger tone in the market. In particular, the recent vibes from the equity market have been supportive with month-to-date gains in the major indices (Dow +5.3%, S&P500 +7.3%, NASDAQ +10.1%) and a substantial drop in implied volatility levels.

Wells Fargo will expand its recently established European securitization services team in the coming months. Ian Hancock, v.p. and head of the London office, says the firm will seek to add between two and four analysts to its securitization transaction management team depending on how quickly the business grows. Hancock joined Wells Fargo in April from Bank One and opened the London office in May. The team focuses on portfolio administration for mortgage-backed deals and collateralized debt obligations.

Jim Higgins, a managing director and New York-based head of the high-yield trading desk at Salomon Smith Barney, has moved to London, according to a buy-side trader and a trader at a rival firm who have spoken to people on Salomon's desk. The reason for the move could not be determined, nor could it be determined who would replace Higgins, or what his new responsibilities will be. Higgins could not be reached, according to a trader on the desk who declined to give his name. Mark Mulcahy, a senior high-yield trader on the desk, declined comment. Dan Noonan, a firm spokesman, was not available for comment shortly before press time.

Citigroup Investments has hired Pete Tauckus as a v.p. and high-yield trader based in New York, according to a trader familiar with the situation. Tauckus, who joined last week, declined comment. He reports to Tom Hajdukiewicz, head of high-yield, who did not return calls. Tauckus replaces a trader who recently left the firm whose name could not be determined.

Morgan Stanley, a second-tier player in the mortgage-backed securities market, is beginning to make its presence felt in the collateralized mortgage obligation sector. The firm, which did not do any transactions last year according to Bloomberg, has done nearly $5 billion worth since the beginning of July. The catalyst for this shift, according to several CMO investors, has been the addition of agency CMO trader Pat Russell from Credit Suisse First Boston early last month. Indeed, a memorandum sent from Russell to the firm's account base last week thanked them for helping launch nearly $5 billion in new agency production and noted that they had traded $4.5 billion on the secondary market.

Banc One Capital Markets is looking for a mortgage-backed securities strategist for its structured debt research team. Alex Roever, managing director and head of the Chicago-based research group overseeing asset-backed finance, MBS and collateralized debt obligations, says he is seeking a seasoned agency and MBS strategist, at the v.p. level. He declined to comment on why they are looking to hire at this point in time. The strategist would report to Roever. He says the position is a newly created one and is expecting to fill the new slot within a month or two.

Deutsche Bank has hired John Santoro to be its "short-coupon" Treasury bond trader, trading primarily two-year notes. Santoro will replace Jeff Gray, who was released last week. He declined to comment when reached at his desk. Gray had already left the firm and was unavailable for comment late last week. Ted Meyer, a Deutsche Bank spokesman, says Santoro will report to fixed-income chief Thomas Paul. His first day was last Monday. His last job was at SG Cowen, where he ran the government bond desk from 1998 until the first week of April, when he resigned. Late last year, SG Cowen gave up its primary dealership.