Breaking news: UBS makes big hire in credit
UBS has made a big hire to rebuild its battered fixed income franchise. This well-known banker has built businesses before and is the first sign that the firm has made of its commitment to the sector.
UBS, the embattled Swiss bank, has hired Rajeev Misra to run its credit business. Misra has been out of investment banking since June 2008. He was widely reported to be starting a hedge fund and spent several months working at London-based fund TCI. For many years, Misra ran credit at Deutsche Bank, and was regarded as one of the leading bankers in structuring credit and managing proprietary credit risk before the crunch came. He will join UBS at some point in the summer.
It is therefore something of a surprise hire for UBS, which has been de-risking its fixed income business following over $50 billion of credit-related losses.
UBS insiders say that the bank has missed out on much of the credit-related bumper profits that other investment banks have generated in 2009.
Misra is the first key hire for the new UBS investment banking management team of Alex Wilmot-Sitwell and Carsten Kengeter. The latter, who joined UBS from Goldman Sachs last year, is a debt market specialist who has been charged with rebuilding UBS’s fixed income platform.