Jan. 26 (Bloomberg) -- Cantor Fitzgerald & Co. named seven managing directors to its credit fixed-income business, including the high-yield, investment-grade and research groups even as big banks reduce headcount and Wall Street bonuses are scaled back.
The new hires, which bring to more than 50 the number of employees joining the New York-based investment bank’s credit fixed-income business since 2010, will report to Adam Vengrow and David Pichler, co-heads of the group, according to the firm.
Cantor is expanding its team as Royal Bank of Scotland Group Plc said it is cutting about 4,800 jobs, including closing its cash-equities, mergers-advisory, corporate-broking and equity-capital-markets operations. Morgan Stanley may be reducing pay for senior investment bankers and traders by as much as 30 percent for 2011 while Bank of America Corp. could cut compensation by about 25 percent.
“We think we can take advantage of the change in how the business is done, as larger firms pull back and smaller firms that don’t have scale go out of business,” Chief Executive Officer Shawn Matthews said in a Jan. 24 telephone interview. “The credit space is one where we were able to hire some uniquely qualified, very talented people and we certainly are looking to continue to grow that business.”
Jack Oestreicher, formerly of Royal Bank of Scotland, and Rob Barret, previously at BNP Paribas SA, joined Cantor’s high- yield group. Oestreicher will focus on high-yield and distressed sales, while Barret will be responsible for trading.
200 Hires in 2012
Scott Sodokoff, Jim McHugh and Bill Dial will work in Cantor’s investment-grade group. Sodokoff, previously at Piper Jaffray Cos., will be responsible for trading in the energy, utility, project-finance, aircraft and military-housing sectors. McHugh, formerly at MF Global Holdings Ltd., will be responsible for sales and Dial, previously at Knight Capital Group Inc., will focus on trading.
Elie Radinsky and Grenville Day will focus on high-yield, distressed and bank-loan research. Radinsky most recently headed high-yield research groups at BTIG LLC and Chapdelaine Credit Partners. Day joins from Citadel Securities LLC, where he was a distressed and special-situations analyst.
Cantor, one of 21 primary dealers authorized to trade U.S. government securities with the Federal Reserve Bank of New York, has said it’s seeking to make about 200 new hires this year.
“I’m pretty confident in that number, and believe we will hit that target this year,” Matthews said, adding that Cantor is expanding its mortgage, agency and muni businesses, including overseas.
“We’ve stuck to our mantra in who we are and what we do, and we’re a service firm,” Matthews said. “We believe that if you use your capital not to trade against your customers but to help them facilitate their business, they will continue to come back to you.”
--Editors: Chapin Wright, Faris Khan
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