Citigroup Inc. (C) has hired Maggie Wang, head of U.S. collateralized loan obligation research at JPMorgan Chase & Co., as a director in its credit-strategy department.
Wang starts in June, said Sophia Stewart, a Citigroup spokeswoman. Wang, who will be based in New York, is expected to continue to focus on CLO research, according to a person with knowledge of the move, who asked not to be identified because it hasn’t been announced publicly.
Sales of CLOs in the U.S. reached $82 billion in 2013, the third-largest year on record, according to Royal Bank of Scotland Group Plc data. The market got off to a slow start in 2014 after the release of the Volcker Rule in December, which prohibits banks from buying the debt of CLOs that own bonds, with just $2.55 billion of funds issued in January. Sales have since rebounded, rising to $12.3 billion in April, the busiest month since May 2007.
Wang, who joined JPMorgan in 2007, declined to comment. Justin Perras, a JPMorgan spokesman, didn’t immediately return a telephone call seeking comment.
CLOs are a type of collateralized debt obligation that pool high-yield, high-risk loans and slice them into securities of varying risk and return. High-yield debt is rated below Baa3 by Moody’s Investors Service and lower than BBB- by Standard & Poor’s.
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