Lazard Capital Markets LLC, the closely held brokerage controlled by current and former Lazard Ltd. (LAZ:US) employees, hired Peter Santry as global head of fixed-income trading as it expands in credit.
Santry, 54, previously served as head of distressed trading at Jefferies Group LLC. Scott Sunshine, an outside spokesman for the firm at Water & Wall Group, confirmed the hire. Santry reports to Tim Grell, head of global fixed income at Lazard Capital.
The firm is seeking to build its debt business as trading in leveraged loans in the U.S. rose to $150 billion in the second quarter from about $120 billion the previous three months, according to the Loan Syndications and Trading Association. Non-bank lenders bought $298.4 billion of the senior ranking debt in the first seven months of the year, surpassing all of 2012.
Loan trading volume for par, or performing credits, rose to $144 billion in the second quarter, compared with $114.5 billion during the first three months, according to an LSTA report. Distressed trading volume rose to $6.1 billion compared with $5.2 billion during the first quarter.
Eighty-six percent of loan trades in the second quarter were at a price above 98 cents on the dollar, compared with 65 percent during the same period in 2012, according to the LSTA report.
The majority of the loans issued have been used to refinance debt and cut borrowing costs. Speculative-grade borrowers obtained $157 billion of loans to refinance during the first seven months of this year, while reducing the rate on $187.7 billion of existing debt, according to Standard & Poor’s Capital IQ Leveraged Commentary and Data.
Santry, who is based in New York, spent 14 years at Bank of America Corp. where he was head of the global special situations group. He joined Chapdelaine & Co. in 2009 to lead a loan and distressed-debt trading group. He started at Jefferies in 2010.
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