Bloomberg News

Cantor to Double Asset-Backed Bond Trading in Secured Debt Surge

January 24, 2012

Jan. 24 (Bloomberg) -- Cantor Fitzgerald & Co., the New York-based investment bank, plans to double its asset-backed securities and covered-bond trading and sales unit in Europe as banks become more reliant on the secured debt for funding.

The firm is hiring one trader and about four salesmen to its existing team of five, according to Shammi Malik, the head of asset-backed securities and covered bond trading and sales in London. Cantor is planning to expand coverage for regions including Germany, France, the U.K., Spain and Portugal.

Chief Executive Officer Howard Lutnick said Jan. 11 that Cantor and its BGC Partners brokerage unit plan to hire more than 500 people this year. Securities firms cut more than 200,000 jobs last year as trading slumped and deals were pulled amid declining economic growth and the sovereign-debt crisis, data compiled by Bloomberg show.

“Banks are deleveraging and reducing balance sheets” while “smaller, similar brokers will fall by the wayside due to tougher market conditions,” said Malik, who has been in securitization for more than 20 years in positions including head of asset-backed securities trading at Societe Generale SA.

Cantor also plans to get mandates to manage sales of asset- backed securities in primary markets, he said.

Asset-backed securities pool home and consumer loans that can be sold to investors as notes. Covered bonds are backed by mortgages or public-sector loans and guaranteed by the issuer.

--Editors: Andrew Reierson, Paul Armstrong

To contact the reporter on this story: Esteban Duarte in Madrid at eduarterubia@bloomberg.net

To contact the editor responsible for this story: Paul Armstrong at parmstrong10@bloomberg.net


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