Credit Suisse Investment-Grade Credit Trader Kenny Said to LeaveMichael J. Moore and Lisa Abramowicz
Jim Kenny, formerly co-head of U.S. investment-grade credit trading at Credit Suisse Group AG, has left Switzerland’s second-biggest bank, according to four people briefed on the matter.
Steve Feinberg, previously Kenny’s co-head, will lead the New York-based group on his own, two of the people said yesterday, requesting anonymity because the move hasn’t been made public.
Credit Suisse said in July that its credit-trading unit, which had a top-three market share, earned the highest return of any of the businesses within its investment banking and trading division. The business had about $970 million in revenue in the first half of this year, up from about $920 million in the same period of 2012. The Zurich-based firm is scheduled to report third-quarter results this week.
Drew Benson, a spokesman for Credit Suisse, declined to comment. Kenny also declined to comment.
Kenny worked at Bear Stearns Cos. from 1997 until 2008, when the New York-based firm collapsed and was bought by JPMorgan Chase & Co., according to records with the Financial Industry Regulatory Authority. He joined Credit Suisse later that year.
Average daily volume of investment-grade bonds in the third quarter was $11.6 billion, down 13 percent from the second quarter and up 8.2 percent from the third quarter of 2012, according to data compiled by Bloomberg.
Companies have sold $937 billion of investment-grade bonds in the U.S. this year, the data show, helping boost the total volume of outstanding notes to $4.3 trillion from $3.9 trillion a year ago on the Bank of America Merrill Lynch U.S. Corporate Index. The debentures are losing 1.4 percent this year after an average return of 11.7 in each of the four years after 2008, the data show.
Trading of corporate bonds hasn’t kept pace with the expansion of the market. Average daily trading volume has fallen to 0.3 percent of the $5.5 trillion U.S. corporate bond market from 0.5 percent of a $3.5 trillion market in 2009, according to data from Finra and Bank of America Corp.
Credit Suisse has lost at least three other senior members of its New York-based credit team in recent months. Phil DeSantis left as co-head of global credit products after 13 years at the bank, according to an internal memo distributed in March. Jed Kelly exited as the co-head of syndicated loan sales one day after DeSantis’s departure was announced.
Catherine Duffy, a New York-based managing director in high-yield sales, left in June after returning to Credit Suisse in 2010 following an earlier 24-year career at the bank and a predecessor firm, Donaldson, Lufkin & Jenrette Inc., according to records maintained by Finra.