Morgan Stanley named Kevin Dunleavy, an executive who tends to some of the bank’s biggest securities clients, to run fixed-income sales as the firm looks to turn around its bond unit.
Jeff Pagano, who previously led U.S. fixed-income sales, will replace Dunleavy as head of senior relationship management, according to a memo to staff from Ted Pick, head of the broader trading division since October. Mark Lake, a company spokesman, confirmed the memo’s contents. Reuters reported the appointments earlier Monday.
Morgan Stanley is trying to overhaul its fixed-income operations -- a capital-intensive business that several firms, especially European banks, have been shrinking in response to stiffer rules and a years-long trading slump. The New York-based bank recently cut about a quarter of its staff in that division and this month named Sam Kellie-Smith, who helped Morgan Stanley become Wall Street’s top equities-trading shop by revenue, to revamp the business. He’s the sixth manager to take on that challenge in the past seven years.
Morgan Stanley’s revenue from fixed-income sales and trading slid 8.2 percent to $550 million in the fourth quarter, excluding one-time items, a steeper drop than many analysts had estimated and the second-lowest since the financial crisis.