Merrill looks to cross-sell
Merrill Lynch is reshuffling its European investment banking division to create a new structured credit unit.
Formed by merging the credit derivatives and securitization divisions, Merrill aims to put credit derivatives at the heart of its debt strategy. Glenn Barnes, who joined from the credit derivatives team at Dresdner Kleinwort Benson last July, will head the origination side of the new unit. Dale Lattanzio is promoted to head of trading.
Mike Clancy, who also joined last year from Dresdner, becomes head of European credit markets. Barnes explains: "We want to take a derivatives way of thinking and apply it across the board to different areas of the firm. The keyword is convergence."
A number of other investment banks, including JP Morgan Chase, ABN Amro and Credit Suisse First Boston, are trying to use credit derivatives business to make up for losses in profits from bond underwriting and trading.