Two Exit UBS Distressed-Debt Group After Leader’s Departure

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Two members of a debt-focused trading unit at UBS Group AG left the firm this week following the departure of the team’s leader in January.

Dennis Ruggere, the global head of event-driven research, and Chris Ellis, who sought out distressed and infrequently traded assets for the group, have left. Megan Stinson, a UBS spokeswoman, confirmed their departures. In January, Tom Einhorn exited the Swiss lender as global head of the group to start his own hedge fund.

While UBS has been shrinking its securities unit following the financial crisis, this group had been expanding, adding at least four employees last year. The team caters to global investment-firm clients including event-driven hedge funds, providing ideas and trading securities such as sovereign Greek debt and corporate bonds of Caesars Entertainment Corp., NII Capital Corp. and HSH Nordbank AG.

The group will be consolidated under regional leadership, according to Stinson. UBS has recently added some staff to the unit, including debt trader Steven Craig, who joined in London and will be reporting to Phil Loach, head of leveraged-finance trading in Europe, she said.

Ruggere, 40, departed Wednesday. He joined UBS in 2010 from Fir Tree Partners, where he ran global credit strategy in New York. Ellis joined UBS in 2014 from Mizuho Securities USA Inc. Prior to that, he worked at Goldman Sachs Group Inc.

UBS has been the 13th most-active manager of U.S. high-yield bond sales this year, down from 10th place in 2014, according to data compiled by Bloomberg.

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