Credit Suisse Hires Snizek From HSBC for Loan Trading Amid LBO Rebuilding
Credit Suisse Group AG hired Stephen Snizek for loan trading from HSBC Holdings Plc as investment banks rebuild the teams that arrange and trade the debt that backs leveraged buyouts.
Snizek, the former head of European loan sales and trading at HSBC, is joining Credit Suisse in London as co-head of par loan trading, said Duncan King, a spokesman in New York for Switzerland’s biggest bank. Snizek, who said he was unavailable for immediate comment, arrived at HSBC from Deutsche Bank AG in June 2008.
Credit Suisse planned 20 hires in leveraged finance investment banking, Chief Operating Officer David Mathers said last month. Banks have arranged $91.8 billion of leveraged loans this year in the U.S., more than four times the figure from the same period in 2009, amid a record debt rally.
The bank is “hiring in a competitive playing field, but it has strengthened itself and has been able to capture some market share in fixed income,” said Jaap Meijer, a bank analyst at Evolution Securities Ltd. in London.
The S&P/LSTA U.S. Leveraged Loan 100 Index has returned 5.68 percent, following last year’s record 52 percent return as the economy has emerged from the worst recession since the 1930s and corporate defaults have declined.
Return to Profitability
Credit Suisse returned to profitability after cutting 7,420 posts across the whole bank since the start of the financial crisis, according to data compiled by Bloomberg.
Last month, the firm added Bill Bermont and Joe Dougherty from Citigroup Inc. for sales positions in loans and bonds in New York. Catherine Duffy, a managing director in high-yield sales in New York who left Credit Suisse in 2007 also rejoined last month, King said.
Morgan Stanley, the sixth-largest U.S. bank by assets, said yesterday it recruited Dan Toscano as co-head of leveraged and acquisition finance. Toscano, 45, will join the New York-based firm May 3 and will lead the group with Gene Martin, according to an internal memo from Raj Dhanda, Morgan Stanley’s head of global capital markets.
High-yield debt is rated below Baa3 by Moody’s Investors Service and lower than BBB- by Standard & Poor’s. Leveraged loans are repaid first in bankruptcy ahead of bonds and equities.
Charles Clarke, a spokesman for HSBC, confirmed Snizek’s departure.