Guggenheim Hires Hersch for New Leveraged-Loan Trading BusinessKristen Haunss
Guggenheim Securities LLC, the investment banking and capital markets division of Guggenheim Partners, hired trader Chad Hersch as it sets up its first loan-trading group.
Hersch, who previously worked at UBS AG, may start trading performing loans as soon as this week, according to Anthony Lacavaro, a Guggenheim spokesman. New York-based Hersch reports to Peter Santry, a managing director who trades distressed debt.
Guggenheim is setting up the new group as trading in the U.S. leveraged-loan market reached $166.4 billion in the third quarter, putting 2014 on pace for a record year, according to the Loan Syndications and Trading Association. Data for the fourth quarter is expected to be announced later this month.
Last year the firm hired members of Lazard Capital Markets LLC’s U.S. fixed-income team, including Santry and Tim Grell, who is now head of high-yield sales and trading at Guggenheim, Lacavaro said. Guggenheim began trading high-yield bonds in 2010.
The firm also hired Nancy Unrath and John Gorham for credit sales, primarily focused on loans, Lacavaro said.
Leveraged loans and high-yield bonds are typically rated below BBB- by Standard & Poor’s and less than Baa3 at Moody’s Investors Service.