Peter Bacon, Morgan Stanley’s head of capital markets in Europe, and Gene Martin, co-head of the leveraged and acquisition finance group, are leaving the bank, according to people briefed on the matter.
Bacon plans to pursue other opportunities, according to an internal memo from Raj Dhanda, Morgan Stanley’s head of global capital markets. A copy of the memo was obtained by Bloomberg News and the contents were confirmed by Morgan Stanley spokeswoman Mary Claire Delaney. Martin’s departure means Dan Toscano, hired as his co-head in April 2010, will run the group on his own, said two of the people, who asked not to be identified because the departures weren’t publicly announced.
Bacon joined Morgan Stanley in 2007 as chairman of the financial-sponsors group and co-head of global leveraged and acquisition finance in London. He later became head of capital markets for the Europe, Middle East and Africa region. Martin joined the bank in 2003, after working at Credit Suisse Group AG and Donaldson, Lufkin & Jenrette.
The bank is eliminating 1,700 jobs this month as Chief Executive Officer James Gorman pursues $1.6 billion of annual savings during the next two years. The New York-based firm is also deferring all bonuses for employees who have both total pay of more than $350,000 and incentive compensation of at least $50,000, a person briefed on the matter said earlier this month.
Morgan Stanley was the second-ranked equity underwriter in Europe, the Middle East and Africa last year, according to data compiled by Bloomberg. It was the eighth-largest underwriter of both leveraged loans and high-yield bonds in the U.S. last year, the data show. The bank arranged $34 billion of leveraged loans and $22.7 billion of high-yield bonds.
Leveraged loans, those rated below BBB- by Standard & Poor’s and less than Baa3 at Moody’s Investors Service, returned 9.7 percent last year, according to the JPMorgan Leveraged Loan Index.