Dennis Lafferty, one of Goldman Sachs Group Inc.’s top distressed-debt traders, is in talks to join HSBC Holdings Plc to run a new loans and special situations unit in New York, according to two people with knowledge of the matter.
Lafferty is a managing director at Goldman Sachs and served as co-head of distressed-debt trading with Tom Tormey and Jerry Keefe. Tormey was elevated to the position of partner in November and Keefe left the bank for a hedge-fund firm in March.
Lafferty declined to comment, as did Tiffany Galvin, a spokeswoman for New York-based Goldman Sachs, and Jonny Blostone, a spokesman for London-based HSBC.
Goldman’s distressed-debt desk has suffered losses this year amid turmoil in commodities, paper and shipping industries. The group had lost $50 million to $60 million in 2015, people familiar with the performance said last week.
The team is part of the firm’s credit-trading business, which has generated about a quarter of the bank’s fixed-income trading revenue over the past five years, or about $2.5 billion a year.
Lafferty joined Goldman Sachs in 2006 and earlier worked at Deutsche Bank AG, according to records maintained by the Financial Industry Regulatory Authority.
At HSBC, Lafferty would run the U.S. section of a global loans and special situations group, which is based in London, said one of the people, who asked not to be identified because the discussions are private.