Jason Schechter, global head of collateralized loan obligation trading at UBS AG (UBSN) in New York, has left the bank.
Schechter joined UBS last year from Barclays Plc where he was a managing director and structured-credit trader, according to data compiled by Bloomberg. Karina Byrne, a UBS spokeswoman, confirmed the departure and declined to comment further. Schechter declined to comment.
No replacement for Schechter has been named yet, according to a person with knowledge of the move who asked not to be identified because it hasn’t been announced publicly. His responsibilities have been assumed by other members of the team.
CLOs are a type of collateralized debt obligation that pool high-yield, high-risk loans and slice them into securities of varying risk and return.
There have been $28.2 billion of CLOs backed by widely syndicated loans issued this year, the most since 2007, according to Bloomberg and Morgan Stanley data.
UBS has arranged five CLOs backed by widely syndicated loans this year, according to Bloomberg data.
CLO issuance increased as the price of leveraged loans rose. Loan prices climbed to 96.3 cents on the dollar Sept. 25 from 91.1 cents on Jan. 3, as measured by the S&P/LSTA U.S. Leveraged Loan 100 Index.
The price of AAA CLO debt rose to 95.25 cents on Aug. 23, the highest level since June 2011, according to Morgan Stanley data. The highest-rated portion of these funds fell to a low of 69 cents in April 2009.
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