Nomura Said to Hire Brian Vescio for Securitized Debt Businessby
Nomura Holdings Inc. is hiring Brian Vescio for its securitized debt group, according to two people with knowledge of the matter.
Vescio would help oversee the mortgage bonds unit, said the people, who asked not to be identified because the information isn’t public.
Most recently a portfolio manager at investment firm Millennium Partners, Vescio also worked at Deutsche Bank AG as a mortgage-bond trader from 2006 to 2010, according to his LinkedIn profile.
Vescio didn’t respond to phone and e-mail messages seeking comment. Jonathan Hodgkinson, a Nomura spokesman, declined to comment.
Japan’s biggest broker is seeking to expand into the U.S. bond market. Jonathan Raiff, global markets head for the America’s, emphasized earlier this year the lender’s goal to build a stronger rates business in the region and agency bonds are a key part of that, he said. The effort comes amid calls from shareholders to exit unprofitable overseas businesses. The company this week named Karan Madan as head of emerging markets for the America’s, where he will also oversee structured products in that region.
Nomura’s U.S. securitized-debt group bundles and trades pools of home loans and other types of debt receivables. The unit has recently won mandates on a number of high-profile residential mortgage bond deals. It’s in the process of marketing at least two of the earliest securitizations of non-prime home loans to emerge since 2008.
The structured-products business has been under scrutiny, with the lender facing government accusations that it helped fuel the bubble that led to the 2007 collapse of the U.S. housing market. Nomura blamed the crash for losses at government-owned mortgage companies Fannie Mae and Freddie Mac.
Three former Nomura traders were charged in September with defrauding investors by inflating the prices of mortgage-backed securities in the wake of the financial crisis. Another former trader pleaded guilty in March to a fraud scheme in relation his activities while previously at Royal Bank of Scotland Group Plc.
The group’s headcount has shrunk by at least nine over the last year and a half. Some of the reduction came amid planned cuts.